I was wondering if the banks are actually going to change their criteria or not. Maybe they don't need to update the way they lend because of the new regulations. Are they dealing with applications the same but now you need to fall within the new CB rules. If not the calculators won't change either.
Will the lenders change their mortgage calcualtors due to the CB's new rules?
- Thread starter liger
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Brendan Burgess
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A very good question.
Let's look at it from a FTB's point of view, for example.
The bank will have to change the calculator to adjust the maximum LTV on loans over €220k.
So it works out that you qualify for a loan of say €250k. But you want €300k.
The bank is allowed to lend in excess of the limit on 15% of its new loans. It could adjust the criteria to only allow an excess of permitted LTV when the Loan to Income is below 2.5, for example.
Brendan
Let's look at it from a FTB's point of view, for example.
The bank will have to change the calculator to adjust the maximum LTV on loans over €220k.
So it works out that you qualify for a loan of say €250k. But you want €300k.
The bank is allowed to lend in excess of the limit on 15% of its new loans. It could adjust the criteria to only allow an excess of permitted LTV when the Loan to Income is below 2.5, for example.
Brendan