The board of the Central Bank is expected to finalise plans for new mortgage lending rules at a meeting this morning.
It comes amid speculation that the requirement for borrowers to have a 20 per cent deposit put together won't apply to first time buyers.
Uncertainty over the detail of the new rules has been blamed for a slowdown in the growth of property values todwards the end of last year.
Last week, Governor of the Central Bank Patrick Honohan said a decision will be announced shortly and the Central Bank has been “examining the commentary and the submissions to our consultation document very carefully.”
“We’re trying to see what can we do to achieve the goals of waht we set out - are there any elements which need to be relooked at - and we’re going to announce conclusions very shortly,” he added.
Critics of the plan say this will be impossible for ordinary savers, particularly in the capital. The proposals have been criticised by senior civil servants at the Department of Finance.
Ronan Lyons, Economist with Daft.ie and Trinity College Dublin and Pat Davitt, CEO of the Institute of Professional Auctioneers and Valuers spoke to Newstalk Breakfast this morning about the new mortgage lending rules.
Ronan Lyons said we need to learn the lessons of past mistakes:
