New Central Bank Rules on Mortgage Lending

Written by John Hiney

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: info@jgs.ie

John Hiney
John Gaynor & Co Solicitors
42-46 Thomas Street
Dublin 8