The Central Bank introduced new lending rules for mortgage applicants in February 2015. These rules are a very blunt instrument. Mortgages are capped by the following:
1: 3.5 times gross salary.
2: 90 per cent loan to value (LTV) maximum lending up to a purchase price of €220,000 and 80 per cent of the difference above this figure. On a purchase price of €300,000, €262,000 is the maximum borrowing, 87 per cent LTV. For non-first buyers, an 80 per cent LTV limit applies.
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