New Mortgage Rules Announced

New mortgage rules announced

The Central Bank has confirmed it will ease it's mortgage limits for first-time buyers. As originally proposed, most mortgages will require a 20 per cent deposit. However first-time buyers, will be able to borrow up to 90 per cent of the value of a property worth up to 220,000 euro, and 80 per cent of the rest. Buy-to-let purchasers will have to come up with 30 per cent of the purchase price but in a crucial limit, all mortgages are limited to 3-and-a-half times the buyer's total income. The Taoiseach says the new Central Bank mortgage rules strike the right balance. Enda Kenny says the new guidelines will prevent another bubble. However Fianna Fáil says it has "grave concerns" over the impact of the new mortgage rules for families who want to trade up.