New Central Bank Governor To Review Mortgage Rules In Summer

NEW CENTRAL BANK GOVERNOR TO REVIEW MORTGAGE RULES IN SUMMER

The Central Bank is due to review its new mortgage rules in the summer.

The regulations, introduced last September, limit mortgage lending to three and a half times a person’s salary and changed deposit rules, which have had a particular impact on first time buyers, especially around Dublin.

Karl Deeter of Irish Mortgage Brokers says the Central Bank may not make any changes to the rules when it carries out its assessment.

But he says they have had an impact on the housing crisis.

“If you say to someone three and a half times income at a time of very low interest rates, at a time of rising rents and high tax, then really what you’re doing is you’re forcing them to stay in the rented sector” he said.

“That has caused – as a knock-on effect – more people competing for rental houses, rental prices go up, investors are getting out of the sector, it creates more scarcity”.

“They got rid of bedsits, that creates more homelessness – cause the low end of the market is then compressed” he added.

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