Ciarán Lynch (Cork South Central, Labour)
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Those at this table, regardless of whether they are Government or Opposition Members or representatives of the bank, and people who are watching proceedings from outside are of the view that, despite the housing crisis, the citizens of Ireland are going to continue to purchase homes. In order to be sustainable, the housing market must be open to first-time buyers. However, such buyers come with high loan-to-value risks attached. In that context, the 80:20 ratio announced by the Governor of the Central Bank presents a difficulty. In the past people ignored the regulator and the Central Bank and we know to where that led. There is a great deal of merit in what the Governor of the Central Bank is saying. In that context, is there a need to consider putting in place a different type of mortgage product which would reduce the risk involved and permit financial institutions to lend above the loan-to-value ratio for mortgages?

This would permit lenders to loan above the loan-to-value rate of mortgages. I say this on the basis that some kind of mortgage insurance is in place, as is the position in Canada and the Netherlands. Canada is significant as it did not experience a housing bubble like Ireland. Will Bank of Ireland consider a different type of mortgage that will facilitate first-time buyers and meet the Central Bank's criteria? It would have to contain an insurance caveat.