Government sources have welcomed reports that the Central Bank is reconsidering plans to introduce an immediate 20 per cent deposit rule for homebuyers. The Department of Finance has strongly opposed strict lending restrictions of the kind advocated by Central Bank governor Patrick Honohan.
Mr Honohan insisted last week that his position would prevail, but consultations have been going on ahead of tomorrow’s final decision by the Central Bank’s board.
It is expected that a move to a 20 per cent deposit regime will be phased in over a number of years while the impact of the new rules on the market can be assessed.
The introduction of a minimum deposit of 15 per cent appears the most likely option at this stage, with a gradual increase to 20 per cent over a number of years.
Read the full story in the Irish Times
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