Central Bank

2022 - 10 - 19

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Central Bank boss says mortgage rule change will cause 'modest ... (BreakingNews.ie)

The Central Bank of Ireland governor has defended a move to ease mortgage lending rules, which he said will have a “modest” increase on house prices.

“They’re going to be considered first time buyers on the assumption of course, they don’t continue to have the original property, but it’s a reflection of the reality in the way people are living their lives today.” “One of the pieces of feedback that we had in the consultation led us to conclude that actually the rules needed to recognise the reality in which people were living their lives,” he added. “The borrowers themselves need to make sure that what they are borrowing, which is likely to be the most significant financial decision of their lives is something that we’ll be able to manage over their lifetime.” “We felt we had the policy space to make a targeted change, which would actually reduce the costs of the rules to first time buyers, although still maintain the benefits to the whole economy.” “We decided that partly for that reason, but also because the resilience of borrowers generally has improved since 2015, the resilience of banks has improved since 2015,” he added. The Central Bank of Ireland governor has defended a move to ease mortgage lending rules, which he said will have a “modest” increase on house prices.

Irish central bank eases strict mortgage-lending limits (Reuters)

Ireland's central bank is to ease mortgage-lending limits to allow first-time property buyers to borrow up to four times their income, in a move it said ...

That is set to rise to four times from January, the bank said. Register now for FREE unlimited access to Reuters.com The central bank introduced limits in 2015 capping how much banks can lend for the purchase of a home relative to its value and the borrower's income in a bid to prevent a repeat of excessive lending that devastated the economy over a decade ago.

Central Bank defends inflationary easing of mortgage rules amid ... (The Irish Times)

Central Bank of Ireland governor Gabriel Makhlouf has defended a decision to ease its mortgage lending rules, which would ordinarily push home prices higher ...

The Central Bank said its research suggests that the share of renters who can purchase a three-bed semidetached home in Dublin at the latest estimated build price has fallen since 2015. The loan-to-deposit ratio will remain at 70 per cent for up to 90 per cent of buy-to-let loans. “This should make a considerable difference to so many trying to buy their first home,” he said. The regulator will continue to enforce a limit on most loans to second and subsequent home buyers at 3.5 times income. “The purchase of a house and taking out of a mortgage is normally the most significant financial decision anybody makes in their lifetime. “The Central Bank’s job is not to actually make that decision for individuals.

Central Bank to make limited changes to mortgage loan rules (Irish Examiner)

The mortgage rules were first introduced in early 2015 to ensure no repeat of the credit bubble that led to runaway prices and the disastrous collapse in Irish ...

Second-time borrowers are required to provide a deposit of 20%. Mortgage lenders also face restrictions on the amounts they can lend out. Under the current rules, first-time buyers are allowed to borrow up to 3.5 times their household income, and are usually required to provide a deposit of 10% of the value of the property.

Central Bank's new lending rules will 'push up the price of houses' (Newstalk)

The Central Bank's decision to increase the amount an individual can borrow for a mortgage will only push up prices further, the founder of a consumer foru.

“The problem we have in Ireland is that it is too expensive to build houses and at the same time people on good salaries can’t afford to buy houses.” Currently someone can borrow three and a half times their salary. “If Ciara can’t borrow enough money to buy a home and they give her an extra €50,000 that’s great but if they give everybody an extra €50,000, all it does will push the prices of the houses up.

Mortgage lending limits: What will the new Central Bank ... (thejournal.ie)

LTI sets a limit on the amount of money consumers can borrow relative to their gross income. This will move from a flat limit of 3.5 times income for all buyers ...

With people having more affordability now – being able to get bigger mortgages – it would mean that more buyers and more new housing should increase the supply of housing.” LTI sets a limit on the amount of money consumers can borrow relative to their gross income. Over 5,000 readers like you already have stepped up. For the price of one cup of coffee each week you can make a difference. A deposit equal to 10% of the value of the value of the property is required. The exemption was based on 20% of the volume of the total of a bank’s mortgage lending. This will move from a flat limit of 3.5 times income for all buyers to 4 times the gross income of a first-time buyer. The minimum deposit for second/subsequent buyers will decrease to 10% of the property’s value. A borrower on a salary of €40,000 will be able to take out a mortgage of €160,000, while a person with €50,000 could get a mortgage of €200,000. For the price of one cup of coffee each week you can help keep paywalls away. The Loan-to-Value limit (LTV) requires borrowers to have a minimum deposit before getting a mortgage, but for first-time buyers this has remained the same. More than 5,000 readers have already pitched in to keep free access to The Journal.

Vietnam central bank asked to facilitate funds for fuel imports (Reuters)

Vietnam's government has asked its central bank to help local fuel traders have better access to foreign currencies to pay for fuel imports, the Ministry of ...

Market analysts estimate it has this year sold around $20 billion. dollar, making fuel imports even more expensive. Register now for FREE unlimited access to Reuters.com