Brendan Burgess
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The Central Bank published interesting data today. Lenders can lend up to 15% of their loans in excess of the LTV limits of 80%/90% and up to 20% of the LTI limit of 3.5 times income
In the first half of the year, 11% of the loans were in excess of the LTV limit, and 12% were in excess of the LTI limit. (I would have thought that early in the year they would exceed the limits and would cut back later in the year, as the limits are measured on a calendar year basis.)
It's very clear that the Central Bank's LTV restrictions are not stopping anyone getting on the housing ladder. The lenders are using only 1/3rd of the exceptions which they are allowed. In other words, the lenders could, if they wished, lend more to FTBs and they would not exceed the CB's limits.
Less than 1% of of the total mortgages issued were to borrowers who exceeded both the LTI and LTV limits.
In the first half of the year, 11% of the loans were in excess of the LTV limit, and 12% were in excess of the LTI limit. (I would have thought that early in the year they would exceed the limits and would cut back later in the year, as the limits are measured on a calendar year basis.)
It's very clear that the Central Bank's LTV restrictions are not stopping anyone getting on the housing ladder. The lenders are using only 1/3rd of the exceptions which they are allowed. In other words, the lenders could, if they wished, lend more to FTBs and they would not exceed the CB's limits.
Less than 1% of of the total mortgages issued were to borrowers who exceeded both the LTI and LTV limits.
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