Call For Central Bank To Scrap Deposit Plans

A union is calling on the Central Bank to scrap proposals for homebuyers to have a 20% deposit before being approved for a mortgage.

SIPTU GEneral President, Jack O'Connor, said if the plan is implemented it would put home ownership beyond the reach of thousands of individuals and couples.

According to reports, the Central Bank is due to decide next week whether or not to proceed with the controversial plans to change the loan-to-value (LTV) ratios which banks apply for home loans and to require lenders to impose an income threshold of 3.5 times earnings when considering mortgage applications.


Mr O'Connor said: "Many of our members have expressed concern about the impact of this proposal on them, or their children, and their chances of getting on to the property ladder.

"They are not designed to ensure viable lending practices but to protect banking investments. They are socially regressive and would serve to exacerbate an already severe housing crisis.

"They would also place an intolerable burden on individuals and couples planning to buy their own home at a time when average hourly earnings, according to the CSO, are still falling - down 1.4% in the year to last October."

(CD/IT)