# Very few 90% LTV exceptions for first time buyers



## Brendan Burgess (26 Oct 2017)

A new report out by the Central Bank.

·  In total, 14,997 new loans were originated in H1 2017.

·  Average loan-to-value (LTV) and loan-to-income (LTI) ratios rose slightly over the period for both First Time Buyers (FTBs) and Second and Subsequent Buyers (SSBs).

·  93 percent of lending was within the scope of the Regulations. Only a limited number (30 loans in total) of FTBs had an allowance to exceed the FTB LTV limit of 90 per cent LTV.

·  In contrast, 20 per cent of the aggregate value of SSB lending in H1 2017 exceeded the 80 per cent LTV limit for that group.

·  Regarding the LTI limit on Principal Dwelling Houses (PDH) lending, 18 per cent exceeded the 3.5 limit. This compares with 12 per cent in H1 2016.

More FTBs received an LTI allowance than SSBs.


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## Brendan Burgess (26 Oct 2017)




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## RedOnion (26 Nov 2017)

There's probably a reason for so few exemptions to to 90% rule for FTBs. Apart from banks themselves only considering them in exceptional cases, I only recently realised that the tax rebate under the 'help to buy' scheme is considered in the calculation of deposit required to meet CBI rules.

So, for a FTB buying at up to 400k, they potentially only need 5% deposit to meet CBI rules.


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