Running the rule over the market

Many fear looser mortgage requirements will overheat the housing market, but the Central Bank believes the loan-to-income ceiling will prevent that

Graffiti on a closed storefront in central Dublin reflects anger over the housing crisis Picture: Bloomberg

A little over two years ago, in October 2014, the Central Bank sent borrowers and bankers into a tailspin when it indicated that it intended to dramatically tighten up lending conditions in the mortgage market.

On October 7 that year, the bank published a consultation paper outlining its plans for bigger deposits and smaller loans. The bank’s deputy governor, Cyril Roux, said at the time that the measures had been “carefully considered and, ...