Mortgage plea

PUBLISHED : Monday, 18 March, 2002, 12:00am
UPDATED : Monday, 18 March, 2002, 12:00am

In the UK it is possible to get a 99.9 per cent 25-year mortgage on a property that is more than 150 years old.

In Hong Kong it is seemingly impossible to get a 70 per cent 10-year mortgage on a property which is 40 years old.

Given that Hong Kong's first boom years were the 1950s and 1960s, there will surely be a lot of properties in existence which are now more than 40 years old.

Maybe the way to boost the property market is to make it easier for people to get mortgages on any property.

How can it hurt a bank to lend people money to buy an 'old' property? If they default, the bank just lends someone else the money to buy the property and makes still more on interest.

Surely it would benefit everyone concerned, the banks, developers, and the buyers, if there was more activity and more money going around.