Meanwhile, he reassured first time buyers (FTBs) that 100pc mortgages are still available, despite First Active and Ulster Bank issuing a notice to brokers about ‘credit policy changes’ to the product.
Going forward, only civil servants of government departments and public servants including teachers, gardai, prison officers and HSE nurses, will be eligible for the 100pc mortgage. Some other professions are covered but others will be offered between 92pc and 95pc of the price of the property.
However, the numbers drawing down 100pc products has dropped from 34pc in the second half of the year to 23pc in the first half of 2007.
“There was always strict criteria anyway (for the 100pc mortgages),” said Mr Conway.
“There was some expectation they would loosen their rules but they didn’t and they were right to do that.”
He also pointed out that the lifetime of a mortgage has dropped dramatically with many people switching after a number of years. The vast majority of new mortgages are now between 30 and 35 years.
60pc jump in borrowers switching mortgages
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