EC to examine state mortgages

CONTROVERSIAL state mortgages for people already rejected by the banks are being investigated by the European Commission.

The loans, available since the first of January, have been criticised as being subprime of the kind that has contributed to the current collapse of the global economy and encouraging people to pay inflated prices.

The commission said it has received a large number of complaints about the Home Choice Loan scheme and has invited the Irish authorities to comment on the allegations and is examining the replies they have received so far.