When providing you with a home loan, loan providers utilize various requirements to choose just how much these are typically ready to lend both you and they must follow specific Central Bank of Ireland guidelines whenever doing this.
The Central Bank of Ireland’s rules apply limitations to your quantity that loan providers in the Irish market can lend to home loan candidates. These restrictions use loan-to-income (LTI) ratios therefore the loan-to-value (LTV) ratios for both principle homes that are dwelling buy-to-let properties and tend to be besides the lenders’ specific credit policies and conditions. For instance, a loan provider might have limitation to the portion of your get hold of pay which can be used for mortgage repayments.
Loan to income restrictions
A restriction of 3.5 times your gross annual income pertains to applications for home financing for the dwelling home that is principal. This restriction additionally relates to those in negative equity trying to get home financing for the property that is new not those borrowing for the buy-to-let home. (more…)