Sir, – We can prevent another credit-fuelled property bubble by insisting that all mortgages are “non-recourse”. This means that if the borrower cannot pay, and has to hand the house back to the bank, that is all the bank gets – the loan is cleared.
Bankers would share the risk of prices becoming “overheated”. They would soon develop the skills to value property correctly and not be tempted to over-lend during a “hot” market.
I urge the Central Bank to consider this measure. – Yours, etc,
LIAM O’CONNOR,
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Dunmore Road
Waterford.