First-time buyers now permitted to borrow up to four times their income before tax

The changes apply to first-time buyers only, with second and subsequent purchasers still limited to borrowing 3.5 times their income. File picture

The Central Bank has announced changes to its mortgage lending rules which will see first-time buyers able to access additional bank funding equivalent to half their salary from next year.

The move, announced following what the regulator described as a “comprehensive review”, will see first-time buyers permitted to borrow up to four times their income before tax — an increase from the 3.5 times figure that previously applied.