Finance Minister backs Central Bank mortgage rules

The Finance Minister Michael Noonan has again backed the Central Bank mortgage rules, saying that earlier this year it "looked a bit scary" that another housing bubble was starting.

The rules mean those wanting to buy a house must come up with a deposit of 20% of the value.

Michael Noonan has told the Dáil that figures on mortgage lending continue to show increases in the amounts being borrowed for home ownership.

He has said while the rules are constantly being monitored, any review should not take place until the rules are in place for at least a year.

“Housing prices particularly in Dublin were escalating very rapidly and around that time, just after Christmas last year, it looked a bit scary,” he said.

“And there was a lot of commentary in the papers that we were heading straight back to a housing spiral, which would give us inflated housing prices and again more negative equity and another bust.”


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