Central Bank eases rules for first time Buyers

The Central Bank has made it easier for first-time buyers with new mortgage lending rules – Independent.ie

The Central Bank has made a big change to its mortgage lending rules, in a move that will make it easier for new buyers to get a mortgage.

First-time buyers will now be able to borrow any amount with a deposit of 10pc.

The Central Bank has made it easier for first-time buyers with new mortgage lending rules – Independent.ie

Up to now, new borrowers could have been approved for a mortgage with a deposit of 10pc for borrowings up to €220,000.

They needed a 20pc deposit for all amounts over that.

This means that a first-time buyer purchasing a home for €300,000 will qualify for mortgage approval with a deposit of €30,000.

Up to now the buyer needed a deposit of €38,000.

However, the Central Bank is restricting the number of exemptions to the deposit rules to just 5pc all first-time buyer mortgages issued by banks.

It was 15pc.

For all other buyers, such as movers, there will still be a 20pc deposit needed.

The changes take effect from January.