MABS welcome Honohan's comments on mortgage deposits

The Money Advice and Budgeting service has welcomed comments made by the Head of the Central Bank this afternoon, which indicate that the rule on 20% mortgage deposits may be eased.

Patrick Honohan was speaking the MABS National Management Forum in Portlaoise earlier, when he said that customers may be allowed to take out a bigger mortgage, if they purchase mortgage insurance.

Last month, the Central Bank had announced the new lending rules, in an effort to reduce the risk of another property bubble.

They were due to come into effect from January 1, 2015, but Michael Culloty, spokesperson with MABS, says that 20% is too much for first time buyers to pay.

"We must bear in mind that we shouldn't make the burden of entering onto the property ladder so far out of normal peoples' reach that it will affect peoples' ability to buy a home and also affect the property market.

"So I think that there is a balance there that must be arrived at."