Easing of lending restrictions to ‘help first time buyers’ – TheLiberal.ie – Our News, Your Views

Easing of lending restrictions to ‘help first time buyers’

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The issue of mortgage restrictions and deposit requirements for home buyers has been raging for some time.

The suggestion of a 20% deposit before a mortgage would even be considered by a lender created some controversy, insofar as such measure would effectively price most people out the market altogether, with only a selected few being able to save enough money to put down such hefty deposit.

But in order to stimulate the market and assist first time buyers, it is understood that people attempting to get onto the property ladder will only need a 10% deposit.

All other mortgages will require a 20% deposit prior to mortgage drawdown.

Also, sources report that lending restrictions on home loans may have an allowance of 90pc loan-to-value (LTV) for mortgages up to €220,000.

However, the Central Bank is poised to impose the 80pc LTV on loans exceeding that amount.

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