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Tuesday 26 September 2017

Children of rich are only ones able to buy a home

New figures from the banks show the number of people approved for a mortgage was down 10pc in October compared with the same month last year
New figures from the banks show the number of people approved for a mortgage was down 10pc in October compared with the same month last year
Charlie Weston

Charlie Weston

Mortgage lending experts have warned that only the children of wealthy parents are able to afford a deposit to buy a home.

Central Bank lending rules mean that the number of people approved for a mortgage was down 10pc in October compared to the same month last year.

The Association of Expert Mortgage Advisers said that young couples with children could not meet the Central Bank rules to borrow for a home - particularly those in Dublin, where average prices are highest.

However, Central Bank economist Gabriel Fagan defended the more restrictive lending rules. He said that early evidence indicated that the restrictions were cooling the market.

"Tentative evidence suggests that the measures have had a positive effect of removing 'froth' from property prices, particularly in the Dublin residential market," he said.

Irish Independent

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