The campaign was aimed at late-night clubs and bars encouraging first-time buyers to take out a 100 per cent mortgage. The advertisements were placed in fluorescent boxes in bars and clubs around Dublin.
Noel Ahern, the housing minister, said targeting young people while they were under the influence of drink was irresponsible and would encourage unmanageable credit.
He said: “It is sending out the wrong message. Impulsive buying is fine if you want to buy clothes or a pair of shoes. But to get a 35 or 40-year mortgage you need to save hard over a long period of time, engage in serious reflection, obtain proper financial advice and have the personal resolve to be able to pay it back. Mortgages are serious and this form of advertising is reckless.”
First Active Ireland and a number of lenders launched 100 per cent mortgages in the Republic in July and were condemned by consumer groups as an incitement to irresponsible lending.
The Consumers’ Association of Ireland (CAI) has denounced the bank’s selling tactics. Dermot Jewell, director of the CAI, said: “The 100 per cent market is a volatile financial instrument for any borrower. That type of selling is out of balance with that kind of product – it sends out the wrong mess-age; it makes it seem like a pleasant experience.”
A spokesman for First Active said: “Focus groups have revealed that socialising plays a big role in the group targeted – people in their late twenties and early thirties. There are about 200 adverts nationally, but not all of those will be in bars.”
