Mr. Simon Crone:

We have run some indicative numbers as to what it might cost, using our experience. For a €200,000 loan that was lent up to 90%, where the borrower puts in 10%, we believe that the single up-front premium should be in the order of - and it will depend on the terms and conditions of the product - €2,000 as a single, up-front premium paid by the lender to the insurer. If the lender passes on all that cost - because they will spread it over the economic life of the mortgage - it therefore equates to around €250 per year, in the worst case scenario should all the cost be passed on to the borrower in the interest rate that is charged for the mortgage. They may reduce some of that because they would benefit from the risk transfer from their balance sheet to ours.