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Central Bank of Ireland update on Macroprudential Mortgage Lending

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    #2
    Michael D Not Higgins
    Registered Users Posts: 7,223 ✭✭✭Michael D Not Higgins


    From the first link:

    FTBs with an exception to the LTV limits on average:

    Same ages as all FTBs, 34
    Income 60% higher (64k v 103k)
    Loan 70% higher (174k v 296k)
    LTI slightly higher (2.8 v 3.1) but well within limits
    LTV higher (78% v 89%)

    FTBs with an exception on LTI limits on average:

    Nearly same age (33)
    Income slightly lower (66k v 61k)
    Loan 33% higher (173k v 231k)
    LTI higher (2.7 v 3.9)
    LTV nearly the same (78% v 79%)

    Definitely shows the exceptions are going to those with additional capacity in the other metric.


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    #3
    Michael D Not Higgins
    Registered Users Posts: 7,223 ✭✭✭Michael D Not Higgins


    Hopefully someone can help me decipher these.

    JRnqorm.png

    This graph shows the spread of LTI and LTV of First Time Buyers with and without LTV exceptions. That's fine, it shows that no-one without an LTV exception is getting an LTV greater than 90%. However, the rules say you can't get an exception to both the LTV and LTI, so why are there some of the LTV 'with' bars going above 3.5 LTI and even above 4?

    Edit: it's actually mentioned in the report "As noted earlier, some FTB and SSB borrowers had exemptions for both LTV and LTI. However, these are small in number (less than 1 per cent of the value of total in-scope lending for PDH purposes had both allowances)"
    I was sure these were not allowed by the rules.


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    #4
    bleary
    Registered Users Posts: 495 ✭✭bleary


    Yes. Didn't think it was allowed but very small number. I wonder if it's happening with self builds. For example an exemption is granted for loan to income and work starts. Costs overrun for some reason suddenly they are borrowing over 90%. The alternative might be to leave a half finished building to noones benefit.


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    #5
    uberwolf
    Registered Users Posts: 7,580 ✭✭✭uberwolf


    the rules allow both.


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    #6
    REFLINE1
    Registered Users Posts: 396 ✭✭REFLINE1


    When will the review findings of the central bank rules be public?


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    #7
    Michael D Not Higgins
    Registered Users Posts: 7,223 ✭✭✭Michael D Not Higgins


    uberwolf wrote: »
    the rules allow both.

    The media at the time were reporting otherwise. However, it does appear to be the case for only a handful of mortgages so I'm sure they were the exceptions to the exceptions to the rule.

    Another interesting result is that no one got a mortgage above 4.5 LTI.


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