Central Bank Proposes 20% Mortgage Savings Requirement

The Central Bank has announced plans that potential homebuyers should be able to put a 20% deposit on the cost of a property to qualify for a mortgage.

Fine Gael is very concerned about the impact this may have on the ability of individuals and young families to qualify for a mortgage.

Fine Gael TD for Meath East, Helen McEntee, said: "I believe that the 20% rate which is being recommended by the Central Bank is too high and will unduly exclude many credit-worthy potential homebuyers from buying a home. I believe that the rate should be between 10% and 15% and that other criteria such as income should be factored into the deliberations.


"The Central Bank needs to find a balance between facilitating home ownership for credit-worthy individuals and families, and allowing the banks to become overburdened with debt which it cannot sustain.

"I am deeply aware of the concerns about a property bubble, especially in Dublin and surrounding counties such as Meath where demand and prices for homes have increased acutely in the past year. The increased property prices are putting more pressure on potential homebuyers to come up with money.

"Making these people raise 20% of the cost of a home will exclude tens of thousands of people from the fundamental aspiration of home ownership and will ensure that many have to rent their accommodation for an unduly long period of time."

(CD/JP)