Central Bank must find a workable solution for house hunters – Collins

“The Central Bank must find a workable solution for house hunters as a 20% deposit is completely unrealistic for young first time buyers,” says Fine Gael TD for Cork North West, Áine Collins.

“One possible solution could be for the mortgage lender to take into consideration the amount of rent paid by people over a period of time before they applied for their loan. The fact is that this is money that people haven’t been able to save on deposit, because it has disappeared into their monthly rent payments over many years. Perhaps the bank could take these rent payments into account and look for a 10% deposit instead.

“Nobody wants to go back to the irresponsible lending of 100% mortgages. However a 20% deposit is simply too much for a young person to pull together when they have been renting. Even the 15% deposit speculated about today in the media is unrealistic for most people.

“It is now time for the Central Bank to think outside the box and recommend a workable solution for people seeking to buy a home.”