Mr. Fergus Murphy:

AIB is the largest provider of mortgages in the country. Over the past number of years, we have built into our processes and behaviour what we believe is a prudential way of lending and supporting first-time buyers, movers and switchers in the marketplace as it grows again. We will lend a maximum of 92% loan to value, LTV. For one-bedroomed apartments, which are a more risky proposition, we will lend a maximum of 75% LTV and for properties greater than €400,000, where a mortgage greater than €400,000 is required, the maximum LTV we will provide is 85%.

We are looking at the market internationally and looking at those economies where the banking system, particularly the mortgage markets, performed better through the crisis over the past five or six years. Among these are Canada and Australia. We are trying to set our stall up more akin to them. At the same time, the most important factor is affordability. We stress each mortgage application at a 2% stress rate over the rate at which the mortgage is being drawn down. Therefore, we approach credit application in terms of loan to value and affordability.