The Irish mortgage market is “dysfunctional”, a leading mortgage broker said yesterday, squarely putting the blame on strict new Central Bank home-lending controls.

The Government is being urged to bring in a scheme to help first-time buyers save for a deposit for a new home.

The Central Bank’s new restrictions on mortgage lending will stop many people from ever buying a home and trap thousands into paying unaffordable rents, it has been claimed.

Potential home buyers are set to benefit with the launch of the mortgage "brain".