New Central Bank Rules on Mortgage Lending
Central Bank Rules on Mortgages
The Central Bank Rules on Mortgages – On November 23rd 2016 the Central Bank announced that they were relaxing their stringent rules on Mortgage Lending for first time buyers.
Currently a first time buyer needs to have 10% of the purchase price of the property up to €220,000.00 and 20% of any amount over that. By way of example, a person buying a €500,000.00 home currently needs to have €78,000.00 saved – that is 10% of €220,000.00 together with 20% of the €280,000.00 balance.
As of January 1st 2017 that same first time buyer will only need to have 10% of the entire purchase price saved.
It is important to note that this will only apply to first time buyers – homeowners buying a second property or new home will continue to be bound by the current rules.
If you have any questions on mortgages, buying or selling a property do not hesitate to contact us on 01 4540068 or by email: email@example.com
John Gaynor & Co Solicitors LLP
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Learn more about the new rules here