Dr. Mark Cassidy:

The UK restrictions mainly relate to loan-to-income. In fact, our own evidence suggests that loan-to-income is the more binding condition for borrowers. For most borrowers who are unable to get a loan, it is the multiple of their income that is the binding factor, hence we introduced some changes to that. We have 90% loan-to-value; therefore, there is 10% of a deposit. That is a relatively moderate restriction.

In other countries it can be 15% or 20%. In fact, here in Ireland, we previously had a higher loan-to-value of 80%. We think 90% is a prudent level. The issue for first-time borrowers does not relate so much to that as it relates to the high house prices and the shortage of supply in the market.