Taoiseach calls for tweak to mortgage lending rules 'so people can get out of rent trap'

Taoiseach calls for tweak to mortgage lending rules 'so people can get out of rent trap'

The Taoiseach Leo Varadkar has called for changes to the Central Bank mortgage lending rules.

Specifically, Mr Varadkar wants tweaks to the rules that require someone to demonstrate they have been saving money in advance of getting a mortgage.

The Taoiseach said he does not believe his government's housing policy has failed but accepts it is not working yet.

Mr Varadkar said more changes need to be made:

The Taoiseach said: "One aspect of the mortgage rules that is very tough is the fact that you are expected to show that you are saving at the same time as you are renting.

"But, of course, if you didn't have to pay a rent of €2,000 a month you would be able to save.

"I know the Central Bank is independent, I know it is going to look at these things, but as supply increases, I would hope that they would consider changes in that area so people can get out of that rent trap."

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