Sir, – The Central Bank house deposit rules are detrimental to the ability of the majority of citizens who want to get on the property ladder or who want to move to meet family needs for space and accommodation.
The rules need urgent review. On loan to value, on houses up to and including €400,000 loans could be set at 90 per cent; properties between €400,001 and €900,000 with a loan to value set at 80 per cent; with €900,000 the maximum mortgage available for a property from any institution. The loan to income could remain at 3½ times annual income, with cognisance of longer terms than 25 years, say 40 years, for those purchasing properties up to €400,000 to allow for the high-cost early stage, with reviews half way through the period to allow for earlier redemption if required by the borrowers.
This approach would be benefit housing supply, borrowers and dampen any housing boom. – Yours, etc,
HUGH McDERMOTT,
Glasnevin, Dublin 9.
