New tighter rules on mortgage lending come into force from today as the new regulations have now been laid before the Oireachtas.

The Central Bank regulations enforce stricter loan to value and loan to income ratios.  

Central Bank Governor Patrick Honohan signed the regulations on Monday, though lenders had been expected to enforce the new rules since they were confirmed by the Central Bank two weeks ago.

For buyers going through the mortgage process, new loans which have been approved in principle with a full credit assessment completed will escape the tighter lending limits. 

Non first-time residential buyers can borrow a maximum of 80% of the property price. First-time buyers of residential properties can borrow 90% of a property’s value up to €220,000 and 80% of any amount above this limit.  

Investors are subject to a 70% loan to value limit. Some exceptions are allowed.

Residential loans will also be subject to a 3.5 time loan to income ratio.