The Central Bank wants to know the public opinion on the rules of mortgage lending

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The Central Bank of Ireland has launched a public survey as part of its review of the policy framework on restrictions on mortgage lending.

The restrictions were introduced in 2015 to stave off another loan-fueled home price bubble and set limits on how much people can borrow to buy a home.

Now the regulator must conduct a thorough review to ensure that they remain fit for future use.

This is separate from the annual survey, which is held later this year.

As part of this process, he invites members of the public to participate in a new online survey at centralbank.ie/survey.

The survey aims to get the public’s opinion on the mortgage market and what areas they think should be the focus of the survey.

“Communication with the public will be a key element of our review,” said Chief Financial Officer Vasilios Madouro.

“We know that behind the economic data and evidence we look at lies people’s own experiences.”

“A better understanding of this experience will increase the effectiveness of our review. So I encourage people to fill out our online survey. ”

The poll is open until July 30.

The review is scheduled to continue next year.

“The rule of how much people can borrow, tied solely to gross income and not ability to pay, creates anomalies,” said Kevin Johnston, CEO of the Credit Union Development Association, which represents more than 50 credit unions.

“In addition, these mortgage arrangements disproportionately affect first-time buyers, especially individual applicants who are under further pressure to keep their deposit in line with LTV rules.”

Mr Johnston added that the central bank may consider moving to the rules used in some other European countries, where mortgage lending limits are based on the maximum percentage of a person’s net income that can be spent on paying off all debts, including their mortgages.





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