Changes to lending rules will help first time and second time buyers – Cummins

New changes to mortgage lending rules will help both first time buyers trying to get on the property ladder, and second time buyers looking for a fresh start, according to Senator John Cummins, the Fine Gael Seanad Spokesperson on Housing.

Senator Cummins said, “The decision by the Central Bank to relax lending rules for first time buyers will be welcomed by many young individuals and couples who are trying to get their foot on the property ladder. The ability to be able to borrow four times your income brings us more in line with other European countries and will be the difference between some people being able to purchase their own home or not.

“The changes to the definition of a first time buyer to include those who are separated or divorced and no longer have a stake in the family home is also really positive. This will enable many of them to get their lives back on track by securing a home. This change brings Central Bank policy in line with the Government’s ‘fresh start principle’ which allows such individuals to access the Local Authority Home Loan and affordable housing schemes like the First Homes Scheme and the Local Authority Affordable Purchase Scheme.

“While second time buyers will still be restricted to borrowing 3.5 times their income, the relaxation of the deposit rules from 20% to 10% will certainly assist many couples where one or both previously owned a home.

“Today’s announcement will be a real boost for first time buyers trying to get on the property ladder, and second time buyers looking for a fresh start,” Senator Cummins concluded.