If you have a new account but are having problems posting or verifying your account, please email us on [email protected] for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact [email protected]

Second time buyer new rules

  • 19-10-2022 9:07pm
    Registered Users Posts: 307 ✭✭pj12332

    Hi guys,

    Just wondering how the new rules may affect second time buyers in the below situation. So the 3.5 income limit stands for second time buyers but the loan to value from January can be 90% up from 80%.

    If combined income of two people is 95,000 they can get a maximum mortgage of €332,500 with the 3.5 rule. So if they want a house for €412,500 they need €80,000 in savings or equity.

    Am I right in saying there is absolutely no benefit of these new rules for this scenario because a loan of 90% would mean the bank would be giving more than what the 3.5 rule allows. So unless the couple got an exception to the 3.5x income rule they could not go for that specific house on a 90% mortgage?

    Thanks in advance.


  • Registered Users Posts: 2,489 ✭✭✭newmember2

    No...2nd time buyers get 4x also.

    Benefit is for those making a profit on lending the money for the purchase and for those looking to sell houses in a market with huge demand and tiny supply.

    Your last paragraph is all mixed can get a multiple of your annual income and that can amount to 90% of the price you pay for a house so if they offer you 300k you need to have 30k and can buy somewhere for 330k. If the house is 400k then it's the multiple that's the limiting factor and you will need more of a deposit and the LTI will be less than 90%

  • Registered Users Posts: 307 ✭✭pj12332

    Second time buyers are still at 3.5 look at any article and it says that. The 4x is for first time buyers

  • Mortgage plus deposit = purchase price so they can have less of a deposit than previously.

    Say for example, combined income of 80k. 3.5 x of which is 280k which is what they can get as a mortgage. Hasn't changed. Previously they'd have to have had a minimum deposit of 20% of the purchase price so would have had to have saved 70,000. 280+70=350k. Now they can have saved only 10% so 35.1k or so. 280+35.1=311k.

    Those are minimums of course - on the max mortgage amount - and there's nothing saying you can't have more saved or use the equity in the existing house which they're selling to increase what they can purchase.

  • Registered Users Posts: 246 ✭✭Fawk Nin

    Yes you are right there is no benefit there because the deposit is greater than 20% anyway.

    Where the rule would help is if the couple wanted a cheaper home, say €360k and only had €40k in savings but the same salaries as your example.

    Even though they could get a mortgage for €332,500, they would still have needed €72k deposit previously.

    Now, they only need €36k so they can afford the house.

    In general, the change in rules helps people with good salaries but low savings (possibly due to income being spent on rent).

  • Registered Users Posts: 3 jennyjo

    Hi All,

    Looking to trade up to a larger home and have applied to BOI mortgages. The property that we are looking to purchase is €280k. We thought that with the Central Bank new mortgage rules for second time buyers (movers) we would only need a deposit of 10% / €28k , but the figures gone to credit have deposit as 20%/ €56k. On BOI website they also have 20% for movers, am I missing something as we heard 10% everywhere? Is there certain criteria to the 10% ?

  • Advertisement
  • Registered Users Posts: 489 ✭✭theboringfox

    Central bank changed its rules. A bank can decide it wants to still only lend 80% to second time buyer. That does not make sense to me why they would not allow 90% if they allow it for first time buyers. Probably worth checking it with boi directly