Mortgage Measures

The Central Bank of Ireland has announced the outcome of the 2018 review of the mortgage measures affecting homebuyers.

This third annual review follows an extensive evaluation process and is published alongside an FAQ for consumers.

The review confirms that the measures continue to operate as intended. As a result, the review confirms that the LTV and LTI limits and the lending allowances above those limits will remain unchanged for 2019.

As of 23 July 2019 lifetime mortgages are exempt from the LTI limit (see Financial Stability Review 2019: I).

Background

First introduced in February 2015, the mortgage measures are aimed at enhancing the resilience of both borrowers and the banking sector.

The measures set limits on size of mortgages that consumers can borrow through the use of loan-to-value (LTV) and loan-to-income (LTI) limits.

The measures are reviewed annually by the Central Bank.

The first review was announced in November 2016 with changes taking effect 1 January 2017.

Previous Consultations

The regulations were also informed by a public consultation issued in 2014. The Central Bank of Ireland published a feedback document providing an overview of responses to the submissions made during the consultation process and the review process undertaken by the Central Bank of Ireland.

For further information see: CP87 Macro-prudential policy for residential lending.

Previous Reviews

2015 Regulations (Statutory Instrument No. 47 of 2015)

2016 Regulations (Statutory Instrument No. 568 of 2016)

2017 Regulations (Statutory Instrument No. 559 of 2017)

2019 Regulations (Statutory Instrument No. 369 of 2019)

See also:

• Explainer – What are the Mortgage Measures?
• Mortgage Measures - FAQ