Permanent TSB and KBC Bank Ireland have closed the possibility for borrowers to obtain an exemption from the mortgage rules of the Central Bank.
Permanent TSB said its decision “does not mean that we will be closed for LTI (income loan) exceptions for the first buyer for the remainder of the year.”
Under the Central Bank’s lending rules, people can borrow 3.5 times their annual income to buy a house, however, in a single calendar year, 20% of mortgage loans that lenders give to first-time buyers. first-time buyers may be above this ceiling (up to 4.5 times the applicant’s income).
In a statement, the PTSB said: “Because the 20% exception limit is for the year as a whole and because some exceptions granted now may not be drawn for a number of months, we are managing the Exceptions pipeline on an ongoing basis and from time to time we close LTI exceptions for a period of time to make sure we stay within regulatory limits. “
He added that first-time buyers who have already obtained an exemption from the loan rules and “who have approval in principle retain this exception for the duration of their approval.”
KBC Bank Ireland said: “Like all mortgage lenders, KBC is required to continuously follow and monitor the guidelines set by the Central Bank of Ireland on macro-prudential lending limits for residential mortgages.”