New mortgage rules to allow fi...


New mortgage rules to allow first time buyers to borrow four times their income

RedFM News
RedFM News

11:14 19 Oct 2022

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First time buyers will be able to borrow up to four times their gross income, as part of new changes to mortgage rules announced in the past hour.

From January 2023, loan-to-values for second and subsequent buyers will increase by 10%, to 90%.

This means this cohort will need to have a minimum of 10% deposit for a property, the same as first time buyers.

The definition of first time buyers will also change to include people who are divorced, separated or have undergone bankruptcy.

Martina Hennessy, Managing Director of Mortgage Advisory firm, says it may help some renters out of the trap:

"This will just allow people to be able to borrow more money to be able to get out of the current rent trap that they're there in where they're paying more in rent than they actually would be in a mortgage. So, while the rules are changing will increase, the ability for people to borrow more will be under measured kinds of circumstances that the lenders own credit risk and lending policy will still prevail."

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