Getting A Mortgage In 2023
Updated: Apr 5
How Many Times My Salary Can I borrow For A Mortgage in Ireland?
The Central Bank has eased mortgage lending rules since January 2023 for first-time property buyers to allow them to borrow up to four times their income.
The decision comes on the back of the Central Bank's review of their mortgage lending rules which were put in place to prevent another lending bubble. The previous rules had been in place since 2015 with the aim to prevent a credit fuelled property bubble which resulted in the financial crash in Ireland in 2008.
The aim of these measures is to ensure borrowers are able to make their mortgage repayments and also to prevent the property market overheating.
What is the loan to value ( LTV) limit for getting a mortgage?
The loan-to-value (LTV) limit for those buying for the second time has increased to 90% from 80%. The LTV limit for buy-to-let buyers has remained at 70%.
How much of a deposit do you need to as a 2nd time buyer in Ireland?
The current deposit for a second time buyer in Ireland is 10%, which is in line with its current requirement for first-time buyers.
Is it possible to get a mortgage exemption?
Lenders will be permitted to have 15% of their lending above normal lending limits. This allows for flexibility to cater for individual circumstances
While an increase in lending limits is welcome, it is clear that affordability and access to housing are issues facing many people in Ireland.
Which bank is best to get a mortgage with?
Unfortunately, finding the best rate on the market doesn’t automatically mean you’ll get it. Each lender has an eligibility process and criteria and this would be followed in relation to each application.
Some lenders are more flexible than others and incentives can vary too depending on whether you’re a first time buyer, home mover or looking to remortgage.
There are other circumstances that may reduce your choice of lenders. For example building your own property, being self employed or struggling with bad credit.
Using a broker like Citywide makes sense as we will research the market and find the mortgage that best suits your needs and circumstances.
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