Do these new rules apply to first time buyers only?

N

Newbie!

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I'm a little unclear, are the new central bank rules initially only for first-time buyers? For all those young families who are in negative equity already, this would leave it incredibly difficult for them to ever move home again.
 
The Central Bank have essential said that while the banks are not causing the current surge in housing prices, we don't want them going mad again and we don't trust them so we are going to impose regulations.

In a 6 month period, 15% of a banks loans can be over the 80% LTV limit. On the multiple of salary limit of 3.5 income, 20% can be over that limit in the 6 month period.

Switcher, negative equity and arrears mortgages are all exempted.

If you have a mortgage offer from before when the regulations come in, it will still be good.


BTL mortgages will have a LTV of 70% with a 10% over allowance. Because of the receipt of rental income, they believe a low LTV will be a good enough restriction and have exempted them from the LTI.

When I first heard the news, I thought it was very unfair as it would take the first time buyer out of the market completely, in Dublin anyway. But with the 15% allowance over a 6 month period, there is still plenty of scope for FTB to get on the property market.


Steven
www.bluewaterfp.ie
 
Thanks Steven,

So in effect, if the ruling reduces the number of first time buyers in the market, this could be good news for switchers or those moving from neg equity mortgages as it reduces the number of buyers in the market?
 
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