Central Bank statement on mortgage rules review

23 November 2016

Outcome of Review of Mortgage Measures announced

§  Review confirms that the overall framework is appropriate and the measures have contributed to financial and economic stability.

§  Review based on extensive analytical work and public consultation.

§  Refinements to improve the effectiveness and sustainability of the measures.

*** More detail at press conference today at 14:30***

The Central Bank of Ireland today (23 November) announced the outcome of the review of the mortgage measures, following an extensive consultation and evaluation process. The mortgage measures were introduced in February 2015 to enhance the resilience of both borrowers and the banking sector.

The review affirms that the overall framework is appropriate and the measures are contributing to financial and economic stability, reducing the risk of unsustainable lending and borrowing.

Following the review, the framework is broadly unchanged. The 3.5 times ceiling on the loan to income (LTI) ratio remains. Requirements for buy to let borrowers and the exemptions for negative equity mortgage borrowers from the measures also remain unchanged.

The review identified a number of refinements to improve the …

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