Central Bank mortgage review to be published

brm  -  Nov 28, 2017  -  No Comments

The Central Bank will publish the outcome of a review of mortgage rules later today.

The restrictions set official ceilings on how much banks can lend home buyers.

It is expected the main limits will remain in place although there could be some small adjustments.

The rules were highly controversial when introduced almost three years ago and were designed to prevent booms and busts in the mortgage market.

With property prices rising at 12.8% nationally the question the Central Bank will be examining is whether the limits are sufficiently effective.

The restrictions allow banks to lend up to three and a half times a purchaser’s income.

First time buyers must have a 10% deposit, others are required to have a 20% deposit and buy-to-let investors must produce a 30% deposit.

It is expected that those limits will remain in place.

However, a proportion of lending by banks is exempt from the rules.

There has been speculation that might be tightened.

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