The governor of the Central Bank has revealed this morning that the recent cuts to the first time buyers mortgage rules won’t result in house prices being driven up.
Speaking to reporters Philip Lane, said that any rumour regarding the change house prices is completely false and there should be no hike as a result of the bank’s recent ruling. Mr Lane told reporters that most would be buyers would still have to save a bigger deposit anyway, because their income wouldn’t have been sufficiently high to get enough of a mortgage.
Mr lane explained: “73% of borrowers have a deposit larger than the minimum, in part that’s because 3.5 times income LTI ceiling mean that to buy the house they need to raise a bigger deposit.”
The news comes after the bank recently revealed that they were reducing the deposit rate for potential buyers from 20% to 10%.