Do I need an exemption from the Central Bank's mortgage limits to switch my mortgage?

Lookingforadvic

Registered User
Messages
13
Any mortgage broker on here who would know if AIB are at or near their Loan to Income LTI exemption limit for 2019. (I understand that AIB can exempt up to 10% of their mortgages to non first time buyers...am I correct?..would welcome any brokers information about AIB's current LTI exemption percentage left to use for 2019.

Thanks
 

Lookingforadvic

Registered User
Messages
13
Are you saying that the Loan to Income limit of 3.5 times income does not apply if you are a switcher..that it only applies to FTBs and trader uppers..so banks can use 4.5 times or whatever multiple they like (above x 3.5) when considering an application for a switching?
Thanks in advance
 

Brendan Burgess

Founder
Messages
38,136
Who do the mortgage measures apply to?
The mortgage measures apply to mortgages secured on residential property in the State. Equity releases and top-ups on existing mortgages will also continue to be covered by the measures.
Mortgages out of scope of the measures are:
  • The LTV and LTI limits do not apply to switcher mortgages or mortgages entered into in order to address arrears or pre-arrears.
If a banks wants to, they can lend you 10 times your income and 150% of the value of your home.

But I have made the point often that many lenders have stricter lending rules than the Central Bank's limits.

So just because these rules do not apply, it does not mean that a bank will give you a mortgage.

Brendan
 

skrooge

Frequent Poster
Messages
176
If you're switching mortgage providers without increasing your loan amount you are exempt from the rules no matter what your existing bank have you. But as Brendan says the bank doesn't have to take you.

If you're looking to increase your mortgage, say to cover renovation or other factors, you would be subject to the mortgage rules and depending on personal circumstances may require an exemption.

For example, if you borrowed € 1million and have €999k outstanding you are exempt from the rules if you are looking for €999k (or less) but fall under the rules if you are looking for more than the outstanding amount (€999k).
 
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