|Author||Marja Hoek - Smit|
|Theme||Housing Finance Policy|
Loan to Value (LTV) ratios for mortgages for owner-occupied houses for non-first time buyers are subject to a limit of 80 per cent LTV. For first time buyers of properties valued up to €220,000, a maximum LTV of 90 per cent will apply. For first time buyers of properties over €220,000 a 90 per cent limit will apply on the first €220,000 value of a property and an 80 per cent limit will apply on any excess value over this amount. Loan to Value (LTV) for mortgages for buy to let properties are subject to a limit of 70 per cent LTV.
Loan to Income (LTI) ratios for mortgages for owner-occupied housing are subject to a limit of 3.5 times loan to gross income.
“The key objective of these regulations is to increase the resilience of the banking and household sectors to the property market and to reduce the risk of bank credit and house price spirals from developing in the future.”
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