Just a thought.
Permit lenders to give 100% mortgages if they believe 100% is viable.
Do not give any borrower any Mortgage Arrears Resolution Process (MARP)protection until their Loan to Value( LTV) is down below say 75%.
In that way those who feel they can afford up to 100% are under no illusion on the Risk they carry, and are well aware if they cannot repay =repo.
Have a legal document to the effect if they can,t pay =repo.
Run this rule for say 5 years.
I just don,t see lenders/borrowers running mad for another 5 years..
I admire your belief in your fellow citizens Gerry! As far as I'm concerned, in South Dublin area where I'm looking to by, they've gone mad the past 2 years!
I can also see the 1st sob story making the front of the Indo/IT when the Bank tries to repossess 1 of these 'risk-known, 100% mortgages'. DDI, Land League incl that fella Constant Markievicz rocking up to protect the family being harassed by the big bad banks.
Simply won't work.
The sooner Honohan brings this in, the sooner the interference from all quarters will stop. I even see Jack O'Connor ridiculing the proposals today and asking they be brought in over a 20-25 yr periods.