Banks making fewer exemptions to Central Bank rules due to Covid-19

[Brendan Burgess]

According to Niall Brady

Bank of Ireland and PTSB tighten mortgage rules

Bank of Ireland and Permanent TSB have begun turning down house-buyers seeking to borrow more than three-and-a-half times their earnings, in the first signs of how mortgage providers are reacting to the squeeze on earnings caused by the coronavirus crisis.PTSB has issued a blanket ban on all mortgag

www.thetimes.co.uk

Bank of Ireland and Permanent TSB have begun turning down house-buyers seeking to borrow more than three-and-a-half times their earnings, in the first signs of how mortgage providers are reacting to the squeeze on earnings caused by the coronavirus crisis.

PTSB has issued a blanket ban from April 2 on all mortgage applications requiring an exemption from the Central Bank of Ireland’s lending rules. The rules require borrowers to have deposits of up to 20% and cap mortgages at three-and-a-half times their incomes. Exemptions are allowed for borderline applicants.

 

[Saavy99]

They probably thinking there's more risk of increased unemployment and the possibility of wage cuts and rising taxes once this pandemic is over.

 

[Sarenco]

I read a report yesterday that the big lenders in the UK are pulling all mortgage products with an LTV over 60%.

It seems inevitable that underwriting criteria is going to tighten to reflect the current economic reality. Obviously that will put downward pressure on house prices in the short to medium term.