Property buyers borrow too much yet again

Home-buyers are once again overstretching themselves with outsized mortgages in the fresh frenzy to get on the property ladder.

In echoes of the recklessness that preceded the crash, some banks are lending up to 4.5 times combined income when a maximum of three to four times is considered prudent.

Experts say any increase in interest rates could leave many new mortgage holders unable to repay their loans, and they have called on the Central Bank to intervene to ensure loans do not exceed 80% the value of a property and that lenders carry out proper stress tests.