Effective Date for new CB mortgage limits

Hi,
Does anyone know what the effective date will be for the proposed new rules? The wording on the consultation paper seemed to imply an early January effective date. However there were a fair number of responses to the CP and varying amounts of commentary from ministers and lobby groups which had different views on the proposed rules. I wonder whether this will have an impact of when the rules, and the wording of those rules, will come in to force.
I have a vested interest in that I am looking to move house in the first half of next year and the 20% deposit requirement will likely delay our plans.

Thanks
R

If you have a real intent to move in the coming months, there is no reason NOT to apply for approval in principle now so that you can secure the best mortgage for your needs. The limits will be applied on a bank basis, not individual cases and were supposed to be in from the start of the year. I would imagine that the CBI won't be fixed on a date until it decides for itself but that shouldn't stop your application.

I have seen some people say they don't expect them to be in for a while due to the opposition to them.

Remember, the 20% deposit applies to 85% of cases. Make sure you are saving regularly, with money going into a separate account each month which you do not touch. Make sure your credit card bills are paid off in full each month and limit your spending on them too. The cleaner the case you are, the better the chance of you getting accepted with a lower deposit...if and when the changes come in.

Steven
www.bluewaterfp.ie

So with the forthcoming mortgage limits due to be announced next week, is it likely they will be in place with immediate effect or will it be pushed out for March 1st or April 1st?

I think you will just have to wait to see.

As the limits are likely to be phased in, the actual date is not that important. If it's the 1st March for example, I don't expect there to be a huge change on the 1st March.

Brendan

So would I be right in saying if I apply Monday I could get a loan offer and only need 10%? Would this be valid the next few months?

Yes, I understand that such offers are usually valid for 6 months.

Brendan

And if that 6 month approval period was then up, could it then be re-approved for the same amount for another 6 months?(presuming no material change in circumstances)

dec1892 said:

And if that 6 month approval period was then up, could it then be re-approved for the same amount for another 6 months?(presuming no material change in circumstances)

Click to expand...

Not necessarily as the new rules will be in then (to what extent, we don't know) and thus they could/will impinge on your next approval