In 2026, the Central Bank amended the mortgage measures to exempt certain types of bridging loans – to be defined as “principal home bridging loans” – from the Loan-to-Income (LTI) limit that applies to first-time buyers and second-time buyers.
A “principal home bridging loan” is a loan to facilitate the purchase of a property intended as a principal home, prior to the sale of an original principal home. The loan must have a term of no more than 18 months in duration and not impose an obligation on the borrower to repay the capital/principal on the loan during its term. Given that the repayment of the loan is related to the proceeds from the sale of the original property (rather than through regular loan repayments) the LTI limits, which are designed to promote affordability, are less relevant to this product type. However, Loan-to-Value (LTV) limits will continue to apply. For this type of lending, the LTV on origination provides a critical buffer against negative equity and, in practice, the LTVs on products of this nature would be much lower than the limit prescribed by the mortgage measures. Lenders must continue to assess the suitability and affordability of bridging loans for individual borrowers.
This amendment reflects the evolution of the mortgage market where there has been a re-emergence of bridging-style products. Following consultation with industry and civil society stakeholders, the Central Bank considers this change appropriate to maintain the effectiveness of its mortgage measures while continuing to support market functioning.
Decision by the Central Bank of Ireland amending its macroprudential mortgage measures to exempt bridging loans