Central Bank seeks views of public on home mortgage rules

Bank wants members of the public to submit their views on the caps it places on property loans based on income and loan size, but insists the controls overall will remain in place

The Central Bank, which brought in the credit restrictions for the first time in 2015, has pledged to never again allow Irish banks lend many billions in mortgage housing loans that fuelled the boom in house prices and led to the economic disaster when the property bubble collapsed over a decade ago. File picture

The Central Bank has formally launched its review of its mortgage lending rules, saying it wants members of the public to submit their views on the caps it places on property loans based on income and loan size, but insisting the controls overall will remain in place.         

The reviews come as official figures showed house prices rose by almost 1% in May alone, up 5.5% from a year earlier, while estate agents predict prices could rise 7% in Munster over the next 12 months as the economy recovers from the Covid restrictions amid the sharp shortages of new house supply.