Mortgages.ie - Mortgages and Mortgage Protection Insurance

Loan-to-Value limits

The LTV limit requires you to have a minimum deposit before you can get a mortgage. The size of this deposit depends on what category of buyer you are.

• First-time-buyers need to have a minimum deposit of 10%
• Second and subsequent buyers need to have a minimum deposit of 20%
• Buy-to-let buyers need to have a minimum deposit of 30%.

Banks and other lenders have the freedom to lend a certain amount above these limits. In any one calendar year they can give an allowance to:

• Up to 5% of the value of mortgages to first time buyers
• Up to 20% of the value of mortgages to second and subsequent buyers
• Up to 10% of the value of mortgages to buy-to-let buyers.

Loan-to-Income limits

The LTI limit restricts the amount of money you can borrow to a maximum of 3.5 times your gross income. So for example, a couple with a combined income of €100,000 you can borrow up to a maximum of €350,000.

Once again banks and other lenders have the freedom to lend a certain amount above these limits. In any one calendar year they can give an allowance to:

• Up to 20% of the value of mortgages to first-time buyers
• Up to 10% of the value of mortgages to second and subsequent buyers

Ireland is not alone in introducing these kinds of mortgage measures. Many other EU countries have introduced some form of mortgage regulation to help safeguard their national financial systems.