Noonan wants review of Central Bank's mortgage caps

Noonan wants review of Central Bank's mortgage caps

The Finance Minister Michael Noonan has indicated he would like to see a review of the Central Bank's mortgage caps for first-time buyers.

In an interview with the Irish Times, Michael Noonan said there was a shortage of starter homes in Dublin and builders believe the regulations by the bank are too restrictive.

Under the Central Bank measures, first-time buyers are allowed to borrow 90% of their property’s cost, up to a limit of €220,000. They have to provide a further 20% deposit on any amount exceeding this.

Mr Noonan said market conditions were changing and that he was being told by the construction industry that aspects of prudential regulations from the bank were too restrictive.

Minister Noonan called on the Central Bank to review the mortgage caps for first-time buyers - which were introduced eight months ago - but said he would accept whatever conclusion the bank came to about that policy.

He said he had not yet contacted the Central Bank about the issue.

Mr Noonan also said our ecomony could continue growing for the next decade.

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