Finian McGrath
Question:350. Deputy Finian McGrath asked the Minister for Finance his views on a matter (details supplied) regarding new Central Bank rules on house deposits; and if he will make a statement on the matter. [42273/14]
View answerTuesday, 4 November 2014
Questions (350)
Written answers
The Central Bank of Ireland has recently published proposals to introduce new macro-prudential measures for residential mortgage lending in Ireland. The proposed Central Bank measures would place restrictions on the loan to value (LTV) and loan to income (LTI) ratios banks can apply when lending for house purchase.
The measures set out are:
- restrict new lending for principal dwelling houses (PDH) above 80 per cent LTV to no more than 15 per cent of the value of all new PDH loans;
- restrict new lending for PDHs above 3.5 times LTI to no more than 20 per cent of the value of all new PDH loans.
However, the Central Bank has also stated that there needs to be certain exemptions from the LTV limits in certain circumstances, such as mortgages in arrears or in relation to the residual debt from negative equity mortgages.
The Central Bank consultation period on the published proposals runs until 8 December next and submissions and comments on the measures outlined in the consultation paper are invited. These can be submitted in an electronic format to the Central Bank at realestate@centralbank.ie.