Brendan Burgess
Founder
- Messages
- 52,184
If John wants to trade up to a house costing €300k, he can do so because he is exempt from the Central Bank's LTV restrictions. He is still covered by the LTI restrictions.
Although Mary is in a better position than John, she can't trade up because she will need €60k.
In general, I support the 80% rule for second time buyers.
Should the rule be changed to something like the following:
The maximum LTV for second and subsequent buyers should be 80%.
Here is the normal situation envisaged by this rule:
And that seems like an eminently sensible rule.
The Negative Equity exemption can stay in place.
By requiring a deposit of 10% of the purchase price, the absolute negative equity is reduced as is the Loan to Value.
However, mortgages up to 90% should be allowed so long as the borrower is increasing their equity. For example:
Attachments
Last edited: