Easing mortgage rules likely to cause ‘modest’ house price rise - Makhlouf

Gabriel Makhlouf also said the restrictions were never designed to control property costs

Central Bank governor Gabriel Makhlouf. Picture: Rollingnews.ie

The head of the Central Bank has said that easing borrowing restrictions will likely raise property prices following today’s announcement that the regulator will relax its mortgage rules from January.

Today’s announcement means people will be able to borrow four times their income, up from the previous limit of 3.5 times.

Some analysts have said this will lead to higher house prices, as people will now be able to take out larger mortgages, increasing demand. ...