The exceptions should be based on the amount of the loan in excess of the limit

Discussion in 'The Central Bank's 2016 review of mortgage limits' started by Brendan Burgess, 25 Aug 2016.

  1. Brendan Burgess

    Brendan Burgess Founder

    Posts:
    36,141
    I will be making the following point in my submission:


    The exceptions should be based on the amount of the loan in excess of the limit and not the entire loan

    At present, a lender is allowed to give 15% of new loans in excess of the LTV limits
    upload_2016-8-25_11-3-28.png

    Rather than having 15% of loans in excess of the limits, the amount of each loan in excess of the limits should be limited to, say, 2% of the loan book.

    This would encourage lenders to make more loans at 92% and fewer loans at 100%.