DUBLIN: Ireland’s Central Bank expects to make permanent controversial loan-to-value and loan-to-income limits on mortgage lending introduced last year, though the levels may be calibrated, the deputy governor said on Sunday.
Politicians from across the political spectrum have criticised the limits, which aim to avoid a repeat of the 2008 property crash, saying the required 20 percent deposit puts house ownership beyond the means of many.
The crash forced Ireland to seek an international bailout to save its banks.
The Central Bank is due to review the rules in November, but Deputy Governor Sharon Donnery told Ireland’s Sunday Independent newspaper it was not considering removing the limits.
“Our expectation at this stage is that the caps will be a permanent feature and what we will analyse will be the calibration,” she said, according to a transcript of the interview published by the bank.
“Our intention is that some form of cap around LTV (loan-to-value) and LTI (loan-to-income) would become a permanent feature.” If signs emerge that the property market is overheating, the measures could be tightened further, she said.
Copyright Reuters, 2016
Courtesy : BRecorder