Michael Noonan to ask for review of mortgage deposit rules

Finance Minister Michael Noonan will today ask the Central Bank governor to review mortgage deposit rules for buyers, amid suggestions that borrowers cannot raise the funds to purchase homes.

Mr Noonan will discuss pre-budget issues in the scheduled meeting with outgoing governor Patrick Honohan, including the deposit rule which some argue is shutting first-time buyers out of the market.

Mr Noonan faces pressure, especially ahead of the election, to scrap the rule where buyers must have 20% or more of a deposit. While builders want it abolished, economists and experts have warned about unnecessary further interference in the property sector which could in turn see house prices shoot up even further.