Tuesday 27 September 2016

Central Bank to review mortgage rules this summer - Lane

Published 08/01/2016 | 08:38

New Central Bank Governor Philip Lane
New Central Bank Governor Philip Lane

The Central Bank will review its mortgage lending rules this summer, governor Philip Lane told The Irish Times.

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Lane's comments would mean that mortgage applications during spring and early summer, the busiest time for house sales, will continue to be carried out under the current rules, the newspaper reported.

Earlier last year, the Central Bank offered relief to first-time house buyers as it finalised new regulations to introduce curbs on mortgage lending aimed at avoiding a repeat of the devastating 2008 property crash.

The rules required first-time buyers to deposit 10pc on the first €220,000 on a home, and 20pc on any excess value.

In September last year, Irish finance minister Michael Noonan had called for a review of the impact of the Central Bank's new mortgage limits on the supply of houses for first-time buyers.

The upcoming review might see changes only post-autumn or even later, the newspaper said.

The newspaper also reported that further assessments could be made in a couple of years, once a well-established credit register is in place.

Reuters

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