Lenders not accepting new applications seeking exceptions above Central Bank rules
In a move that is not especially surprising, most major lenders have decided not to grant exceptions above the Central Bank rules on mortgage lending. Central Bank rules require that most mortgages should follow certain rules including:
- Maximum Mortgage of 3.5 times Gross Income
- Maximum advance 90% of house value for First Time Buyers
- Maximum advance 80% of house value for Second time buyers
Banks could coffer exceptions above these rules on a limited basis prior to the new policy.
The change has come about as lenders are concerned about the impact of the virus on both incomes and property values and the rules reflect these sentiments.
Applicants who have already been granted an exception should contact their lender to review the terms of their current exception and check if the exception is still available. These applicants should also consider whether taking up an exception in this changing market is prudent..