Exemptions to mortgage lending rules fell during the Covid-19 pandemic but there was no sign of a deterioration in borrower credit quality, according to a report from the Central Bank. The mortgage rules put in place by the Central Bank to ensure responsible lending by banks allow for exemptions against the 80 per cent loan to value threshold for up to 20 per cent of lending to existing homeowners. Only 5 per cent of lending to first-time buyers can exceed the permitted 09 per cent loan to value measure. In terms of loan to income – where the threshold is 3.5 times income – exemptions are allowed for 20 per cent of lending to first-time buyers and 10 per cent of existing homeowners. Dublin homes accounted for over 50 per cent of all exemptions, with a further quarter coming in the rest of Leinster.

Source: The Irish Times June 08, 2021 16:41 UTC