Welcomed by younger buyers - Removal of mortgage cap

THE move by the Central Bank to remove the €220,000 cap on mortgage lending for first-time buyers who have a deposit of 10% will be welcomed by many younger people in particular who are saving to buy their first home.

The move is not a major departure from the current prudential rules imposed by the CB and in particular aims to address the difficulty experienced by first-time buyers in Dublin where house prices are way above the national average.

The move highlights two problems with the housing market in Ireland: