IFSRA refuses to ban 120% mortgages

The Irish Financial Services Regulatory Authority has rejected calls for it to impose a ban on 120% mortgages.

Such products are available in other countries and IFSRA said yesterday that it would not stand in the way of their introduction of Ireland.

There are no known plans by any financial institutions to do so, but the Consumers Association has called on IFSRA to introduce a ban to ensure they never materialise.

Responding to the call, IFSRA chief executive Liam O'Reilly said a ban would not be forthcoming.

He did say, however, that the regulatory body expected financial institutions to act responsibly and said consumers should be aware of the risks.