Outcome of Central Bank mortgage rules review to be revealed this afternoon

Outcome of Central Bank mortgage rules review to be revealed this afternoon

The Central Bank is to announce the outcome of its review on mortgage rules this afternoon.

The existing restrictions set limits on how much home buyers can borrow in relation to their income and the size of their deposit.

The board of the Central Bank will meet to discuss the review this morning and a press conference will be held this afternoon by Governor Philip Lane.

The restrictions were introduced in January last year and were designed to address concerns that the housing market could overheat again.

The rules mean first-time buyers have to produce a 10% deposit on homes valued up to €220,000.

They must have a 20% deposit on any excess over €220,000.

Other home buyers must have a 20% deposit on the entire amount.

There are also restrictions on how much a bank can lend in proportion to a buyer’s income, although there are exemptions.

The Central Bank Governor said he would review the restrictions annually.

However, he emphasised the bank would need hard evidence before it would significantly alter the rules.

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