Good News for First Time Buyers/Divorced/Separated parties
The news from the Central Bank on the 19th October last was a welcome respite for people worried about increasing interests rates.
The Central Bank has increased the upper limit for obtaining a loan form 3.5 times salary to 4 times salary. Furthermore, existing first-time homeowners who get a top up loan or apply to increase their borrowings by re-mortgaging will also be regarded as first time buyers for the new higher loan to income multiple, even though they already own their home as long as they continue to live there.
In addition, the requirement of 20% deposit other than for first time buyers has been reduced to 10% which is good news for people trading up.
The category of first-time buyers will also include people who have separated or divorced and as a result of which they no longer have an interest in the family home. This means that if a person has been bought out of their family home and no longer has a legal interest in property, they will be entitled to the 4 times salary categorisation for the purpose of borrowing. This will also apply to anybody who has lost their home through bankruptcy.
For any further advice in relation to any property or family law related matter, please do not hesitate to contact any of our solicitors in the office at 012960666.
