Brendan Burgess
Founder
- Messages
- 52,176
There is some interesting data in the Consultation Paper.
The Loan to Income ratios will have little impact on current lending
Here is the 2013 breakdown of new mortgage lending for owner occupier
housing purchase by LTV and LTI buckets for the banks active in the Irish
mortgage market.
LTI ratio|% of loans
Over 4.5|6%
4 - 4.5|5%
3.5 -4|9%
<3.5|80%So as lenders can issue 20% of loans in excess of the 3.5 limit, their current lending practices will not be affected. The limits will prevent them from going mad in the future.
The Loan to Value will have a significant impact
LTV ratio|% of loans
Over 90%|11%
85% -90%|21%
80% -85%|8%
< 80%|60%40% of loans were in excess of the 80% limit. So the 15% exemption will not cater for many of them.
I suspect that most first time buyers borrowed in excess of 80%, so they will all be affected.
The Loan to Income ratios will have little impact on current lending
Here is the 2013 breakdown of new mortgage lending for owner occupier
housing purchase by LTV and LTI buckets for the banks active in the Irish
mortgage market.
Over 4.5|6%
4 - 4.5|5%
3.5 -4|9%
<3.5|80%
The Loan to Value will have a significant impact
Over 90%|11%
85% -90%|21%
80% -85%|8%
< 80%|60%
I suspect that most first time buyers borrowed in excess of 80%, so they will all be affected.