New mortgage rules have been confirmed today.
(Source: Pixabay)First time buyers will be able to borrow up to four times their gross income, as part of new changes to mortgage rules that have been announced today.
From January 2023, loan-to-values for second and subsequent buyers will increase by 10 per cent, to 90 per cent.
This means this cohort will need to have a minimum of 10 per cent deposit for a property, which is the same as first time buyers.
The definition of first time buyers will also change to include people who are divorced, separated or have undergone bankruptcy.
Martina Hennessy, who is the Managing Director of mortgage advisory firm www.doddl.ie, says it may help some renters out of the trap:
"Where people can afford to borrow more, this will just allow people to be able to borrow more and many to be able to get out of the current rent trap that they're in, where they're paying more in rent than they actually would be in a mortgage.
"So while the rules are changing and it will increase the ability for people to borrow more, it will be under measured circumstances. The lender's own credit risk and lending policy will still prevail."
