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The Central Bank Loan to Value and Loan to Income regulations are ceilings set on the amount of money that can be borrowed to buy residential property using:
- Loan to Value (LTV) limits
- Loan to Income (LTI) limits.
The LTV limit requires you to have a minimum deposit before you can get a mortgage. The size of this deposit depends on what category of buyer you are.
First-time-buyers are required to have a minimum deposit of 10%.
Second and subsequent buyers (Movers and Switcher) are required to have a minimum deposit of 20%.
The LTI limit restricts the amount of money you can borrow to a maximum of 3.5 times your gross income. So for example, a couple with a combined income of €100,000 can borrow up to a maximum of €350,000.