Shared equity scheme could drive up house prices – Central Bank – Newstalk

The Central Bank has cleared the way for lenders to join the Government’s shared equity home-buying scheme – while warning it could push up house prices.

In its latest annual review, the Central Bank left its mortgage rules unchanged – meaning most applicants can only apply for 3.5 times their income.

Moving forward however, the regulator will permit banks to carry above-limit loans from one calendar year to the next.


Meanwhile, the regulator also took the opportunity to warn that the Government’s controversial ‘First Home’ Affordable Purchase Shared Equity Scheme “has the potential to drive up house prices.”

The scheme will allow the Government to offer loans of up to 30% of the cost of a home to prospective buyers on top of their mortgage.

Despite the warning, the Central Bank gave lenders the green-light to get involved.

Central Bank Governor Gabriel Makhlouf said it would have

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