House buyers were given 100pc loans during crash...
Irish banks agreed to provide 100pc mortgages to one-in-four young first-time buyers last year despite a collapse in the property market.
Thousands entering the property market for the first time took out mortgages with loan-to-value ratios of over 95pc with up to 5,000 taking out the 100pc housing loan.
The Department of the Environment's Housing Bulletin 2008 also revealed that the average age of those who successfully obtained a 100pc mortgage was 31 years.
These loans were taken out for between 31 and 35 years, which would indicate that people would be paying back the cost of their home until they retire.
Banning
Earlier this year, the Financial Regulator said it was considering banning 100pc mortgages and restricting lenders offering homebuyers loans greater than three times their annual salaries.
This followed the publication of a report by the British financial regulator which said there was a case for limiting the size of home loans to protect people from over borrowing.
However, so far there has been no concrete move by the Irish Financial Regulator.
The Financial Regulator has said it had forced banks to put aside extra capital to meet possible defaults from 100pc mortgage-holders since 2006.
The housing figures showed that lenders approved over 53,000 mortgages worth €14.5bn last year.
A total of 41pc were for first-time buyers, and one in four (23pc) of all first-time buyers drew down 100pc loans.
Dogs
Ronan Lyons, of property website daft.ie, said a house buyer who bought in 2007 on a 100pc mortgage would now be in negative equity.
"It's mind-boggling they continued to give out 100pc mortgages in 2008."
Housing Minister Michael Finneran said that a move away from 100pc mortgages would be "welcomed".
The Labour Party's spokes-man for housing Ciaran Lynch said: "Given that the dogs in the streets knew in 2008 that the housing market was collapsing, the banks had a duty of care to lenders but they were still proceeding with practices that were not only questionable but core to the difficulties we're now in," he said.
Report by Claire Murphy - Evening Herald.
Irish banks agreed to provide 100pc mortgages to one-in-four young first-time buyers last year despite a collapse in the property market.
Thousands entering the property market for the first time took out mortgages with loan-to-value ratios of over 95pc with up to 5,000 taking out the 100pc housing loan.
The Department of the Environment's Housing Bulletin 2008 also revealed that the average age of those who successfully obtained a 100pc mortgage was 31 years.
These loans were taken out for between 31 and 35 years, which would indicate that people would be paying back the cost of their home until they retire.
Banning
Earlier this year, the Financial Regulator said it was considering banning 100pc mortgages and restricting lenders offering homebuyers loans greater than three times their annual salaries.
This followed the publication of a report by the British financial regulator which said there was a case for limiting the size of home loans to protect people from over borrowing.
However, so far there has been no concrete move by the Irish Financial Regulator.
The Financial Regulator has said it had forced banks to put aside extra capital to meet possible defaults from 100pc mortgage-holders since 2006.
The housing figures showed that lenders approved over 53,000 mortgages worth €14.5bn last year.
A total of 41pc were for first-time buyers, and one in four (23pc) of all first-time buyers drew down 100pc loans.
Dogs
Ronan Lyons, of property website daft.ie, said a house buyer who bought in 2007 on a 100pc mortgage would now be in negative equity.
"It's mind-boggling they continued to give out 100pc mortgages in 2008."
Housing Minister Michael Finneran said that a move away from 100pc mortgages would be "welcomed".
The Labour Party's spokes-man for housing Ciaran Lynch said: "Given that the dogs in the streets knew in 2008 that the housing market was collapsing, the banks had a duty of care to lenders but they were still proceeding with practices that were not only questionable but core to the difficulties we're now in," he said.
Report by Claire Murphy - Evening Herald.