Change of mind on mortgage deposits welcomed

The Central Bank’s decision not to proceed with a proposed 20% mortgage deposit has brought a collective sigh of relief for many people planning to buy their first home.

“The decision by the Central Bank to revise its proposal for a 20% deposit and to make it easier for first time buyers to save for a deposit is a good one. For young people starting out in life trying to save for a deposit on a home can be a difficult task and this will help them to buy their first home,” commented Clare TD, Joe Carey.

Continuing, he said, “The majority of homes in County Clare fall under the €220,000 level, which requires a 10% deposit. This will mean for most first time buyers they will now only need a 10% deposit. For other more expensive homes a further 20% deposit will be required for any amount above this level.

“This will put in place a set of controls around mortgages and lending that will benefit everyone looking to buy a home. It will provide a set of rules that will help to control property prices. If we had a similar system in place over the last 10 years we would not have experienced the property bubble and its disastrous consequences that have affected so many families.”