AIB chief Duffy says proposed limitations by Central Bank on mortgage lending are right

The head of the country’s second-largest lender has thrown his weight behind the Central Bank’s proposed mortgage restrictions, saying that he agrees with the principles on which they are based.

AIB chief executive, David Duffy said that the proposals with regard to loan-to-income (LTI) restrictions of 3.5 times a lender’s annual income are “not really that different” from those the bank currently applies, while he also gave his broad support to the loan-to-value (LTV) restrictions the Central Bank has proposed.

Mr Duffy indicated that he felt that the 20% rate is a little higher than he expected, in comparison with other countries, but said that, across the bank’s mortgage portfolio, the average LTV is already below the proposed 80% limit.