The Money Advice and Budgeting Service has welcomed comments made by the Governor of the Central Bank this afternoon, which indicate that the rule on 20% mortgage deposits may be eased.
Patrick Honohan made the comments at an address to the MABS National Management Forum in Portlaoise
Last month, the Central Bank announced new lending rules which would see borrowers having to provide a 20% deposit in order to take out a mortgage.
They also would not be allowed to borrow more than three-and-a-half times their gross income.
The regulations were aimed at reducing the risk of another property bubble, and were due to come into effect on January 1st.
However, today, the Governor of the Central Bank Patrick Honohan indicated that if customers buy mortgage insurance, they may be allowed to take out a bigger mortgage.
He says limiting the number of high loan-to-income mortgages will reduce the risk of high-debt among consumers.
Mr Honohan says he is looking forward to responses on the matter.
Michael Culloty spokesperson with MABS says that 20% is too much for first time buyers to pay:
Originally posted at 14.16
