of Butterfield's 95 percent mortgage offer would result in a significant loss of business to them.

Betty Brown, chief executive of Bermuda Savings & Loan said the high rate of financing would mostly attract young professionals with high incomes but low savings.

"I would imagine that rate would only be available to those who can afford the repayment,'' she said.

"Only people with a very healthy income would be able to afford it,'' she added. "I would say professionals who may have also started a business and have not saved up enough for a down payment, but do have a high monthly income.

"We can make a judgment call when we see an application,'' she said, "but our debt to value ratio is normally in the region of 65 percent.'' Bank of Butterfield vice president and head of retail banking, Richard Doughty stressed that its clients are carefully guided as to the percentage of financing that is realistic for their income and lifestyle.