Speculation on state mortgages!

11 October 2008
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State mortgages?

Rumours around Leinster House are hinting at a first-time buyers purchase scheme for new houses with a mortgage financed by the State.

Mortgage intermediaries may be involved in the distribution of these mortgages.

Next Tuesday's Budget will confirm whether these rumours have foundation..

Critics will argue the scheme could have the effect of stopping house prices falling further to their market-adjusted level.At the end of the day if such a scheme is available buyers need to be cautious that the availability of finance does not impair their negotiation skills.

Some Affordable housing schemes have run into major difficulties, with developers withdrawing from the programmes claiming they cannot make money.