What are the mortgage rules in Ireland?

Ireland's mortgage rules are a set of regulations put in place by the Central Bank of Ireland to ensure that borrowers can afford their mortgage repayments and reduce the risk of a housing bubble.

Here are some key points about Ireland's mortgage rules:

1. Loan-to-Value (LTV) Ratio: The maximum LTV ratio allowed for new mortgages is 90% for first-time buyers and 80% for second-time buyers. This means that borrowers must have a deposit of at least 10% for their first home and 20% for their subsequent homes.
2. Loan-to-Income (LTI) Ratio: The maximum LTI ratio allowed is 3.5 times the borrower's gross income for first-time buyers and 3 times for second-time buyers. This means that the amount borrowed cannot exceed 3.5 times the borrower's income for first-time buyers and 3 times for second-time buyers.
3. Stress Testing: Lenders are required to apply a stress test to ensure that borrowers can afford their mortgage repayments even if interest rates rise. The stress test is based on a hypothetical interest rate increase of 2% above the lender's standard variable rate.
4. Mortgage Interest Rates: Lenders are required to offer fixed-rate mortgages with a term of at least 10 years. This is to help borrowers to manage their mortgage repayments over the long term.
5. Exceptions: There are some exceptions to the LTV and LTI rules, for example, for certain types of properties such as new builds or for borrowers who can demonstrate a strong repayment capacity.

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It's important to note that these rules apply to regulated mortgage lenders in Ireland. Borrowers may also be subject to additional requirements from their lender such as proof of income, employment history, and credit history.
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