Michael Dowling: We need a minimum of two more lenders in Ireland

A relaxation of mortgage rules will be countered by the increase in rates

There will be a surge of mortgage applications in the first quarter of 2023 as house-hunters take advantage of new lending rules. File Picture: Denis Minihane

The new year will begin with good news for mortgage customers who are first-time buyers, as the new Central Bank rules will increase the LTI, loan to income, multiple from 3.5 times salary to four times salary as the standard. There will still be exceptions available above this multiple at the discretion of each bank based on its lending policy and appetite for risk.

For second-time buyers, they have the benefit of increased loan-to-value (LTV) thresholds where 90% of the purchase price is available as the standard from 80%.