29 thoughts on “LTV Ireland”

  1. Mark

    Wow. Ireland passes a law with an equation. I’m impressed.

    They must have broken out the latex skills to format this bad boy.

  3. Nikkeboentje

    It’s all going to end in tears! I really pity first time buyers, especially in Dublin. The rental market is going to go nuts.

    1. Joe the Lion

      No it won’t

      It will make an unacceptable situation worse in that all the bogey properties not being sold will now have to be rented. Because we all know there are desperate folks out there scurrying assets away and /or calling them family homes and using every trick in the book to avoid repossession.

  4. Anne

    So, 10% deposit required up to the value of 220K, as well as 20% of the balance of the value – if any – over 220K.

    Coulda been 20% of the lot I suppose.

    1. Anne

      That’s works out at something like 80k deposit required, on a 400K house, if it was 20% of the lot…

      Only the paltry sum of 58K with that formula.

        2. Disgruntled Goat

          In fairness you’ve no business looking to buy a €400K house on a €33K salary (assuming no other income). That’s in excess of 12 times multiplier!

          1. Anne

            What is the multiplier guideline with the banks.. about 3 or 4 times salary is it?
            What can ya get in Dublin then for (33k x 4) 132k? A nice shed or a deluxe caravan off the knackers?

    2. Spaghetti Hoop

      ;)
      Reminds me of the ‘tighten your belt, start saving’ / ‘go out and buy stuff’ hypocrisy of federal economic policies.

  8. Goff

    Had to happen, the answer to rising prices couldn’t be to just borrow more, there’s a reason it’s referred to as “spiraling prices” with buyers competing to see who can borrow the most. I think it will have a damping effect but might not be visible for a while.

  9. Boba Fettucine

    So that’s the landlords taken care of by ensuring a generation of renters, the vintners looked after with the minimum alcohol price and the abortion bill shot down.

    It’s time to party like it’s 1949.

  10. Toni the Exotic Dancer

    This is much needed to intervention by the Central Bank to pop a Bubble. First time buyers need to be saved from themselves. They borrow more so sellers can sell for more. Now they must borrow less and sellers will have to sell for less.

  11. Anomanoman

    It’s a bit unfair to expect someone to save 20% say on €220,000 property. How dare they expect you to actually save move, it shouldn’t take a couple, if on ok wages, more than a few years. I’m taking in to account that most people should have some savings of there own before they meet.

    3. Anne

      You can get 90% it says, when the value is up to 220k. That means a 10% deposit.
      Then it’s pro-rata’d after that, if over 220k.

        1. Anne

          Ah I see –
          Loan-to-Value
          6. (1) Subject to paragraph (2) of this Regulation, a lender shall ensure that:
          (a) the loan-to-value ratio of a housing loan where the borrower is not a
          first time buyer and the residential property on which the housing
          loan is or is to be secured is a principal home shall not exceed 80
          per cent;
          (b) the loan-to-value ratio of a housing loan where the borrower is a firsttime buyer and the residential property on which the housing loan is
          or is to be secured is a principal home shall not exceed the maximum
          loan-to-value ratio calculated in accordance with the Schedule.

          Full 20% required for non first time buyers then…. coz they’d be just flush with equity.

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