Mr. Brendan Burgess:

If the Central Bank brings in a loan-to-value ratio of 80% on 1 January, as proposed, and we do not have mortgage insurance or anything else in place, it will make the problem far worse. People who are now thinking of building houses will not build them because there might not be buyers available for them, certainly in Dublin. I do not know the position in Cork well enough. If the cost of building in Cork is higher than the sale price, they will not be building in Cork anyway. That is the first point.

I suggest that a limit be introduced on 1 January, and that should probably be 90%. It should be indicated that it will be reduced in time. This would then allow us to deal with the question of how we help first-time buyers to buy houses. Perhaps we should reduce the limit from 90% down to 80% in time but leave it at 90% for first-time buyers, or leave it at 90% for new houses. My main concern is that if limits or any changes are introduced suddenly, it might exacerbate the worst problem we are all experiencing, namely, the shortage of housing. I would like to see the limit introduced in time. I do not want to see mortgage indemnity insurance but I believe first-time buyers must be helped. My proposal on giving them early access to their pension fund would help them to get onto the housing ladder. That would be the best approach.