Vol. 502 No. 4
141 Mr. Hayes asked the Minister for the Environment and Local Government the discussions, if any, he has had with the Central Bank and mortgage lenders concerning a possible change in mortgage lending multiples; the circumstances where this change might be considered; and if he will make a statement on the matter. [8547/99]
My Department maintains ongoing contact with the Central Bank on relevant matters relating to the mortgage market. The recent consultants' report, entitled The Housing Market – An Economic Review and Assessment, recommended that a possible change in mortgage lending multiples, from a gross to net income basis, should be considered through consultations between the Central Bank and mortgage lenders. However, the consultants emphasised that any changes on foot of such examination should only be implemented when there is evidence of increased housing supply to meet demand and of sustained house price stabilisation.
The report has been brought to the attention of the Central Bank and my Department will discuss the consultants' recommendation with the Central Bank at an early date.
