Will the new Central Bank mortgage lending rules work?

The new Central Bank rules on mortgage lending were anticipated by house buyers like a visit to the dentist: Fear of the torture to come, followed by an immediate sense of relief that the pain was not so bad, after all — at least for some.

For a man who has repeatedly avowed his independence of government, Central Bank governor Patrick Honohan has shown surprising political astuteness by assigning his only concession to first-time buyers while remaining resolute in consigning the boom-bust cycle to history.

First-timers will only have to stump up 10% of a mortgage while the rest must save double that. Any amount borrowed in excess of the €220,000 ceiling will require a 20% deposit, putting an effective €240,000 ceiling on first-time-buyer homes.