Mortgage Measures

Mortgage Measures

The mortgage measures are aimed at strengthening the resilience of both borrowers and the banking sector.

The measures set limits on size of mortgages that consumers can borrow through the use of loan-to-value (LTV) and loan-to-income (LTI) limits.

The Central Bank is committed to annually reviewing the calibration of the mortgage measures in the context of wider housing and mortgage market developments, to ensure that they continue to meet their objectives of:

  • Increasing the resilience of banks and borrowers to negative economic and financial shocks
  • Dampening the pro-cyclicality of credit and house prices so a damaging credit-house price spiral does not emerge.

The 2021 review of the mortgage measures can be found in the Financial Stability Review 2021:II. The Central Bank has decided that the calibration of the mortgage measures will remain unchanged at this time, in light of the ongoing framework review. The framework review is considering the overarching approach to the mortgage measures to ensure that they remain fit for purpose, in view of the evolution of the financial system and economy since the measures were first introduced in 2015. This framework review will conclude in the second half of 2022.

Operational changes to the measures are being made with the introduction of a "carry-over approach" for allowance lending, and amendments clarifying regulated mortgage lenders’ ability to participate in the "First Home" Shared Equity Scheme.

Overview Mortgage Measures

Previous Reviews and Analysis

First introduced in February 2015, the mortgage measures are aimed at enhancing the resilience of both borrowers and the banking sector. The following provides previous reviews of the mortgage measures, associated research and Statutory Instruments.

See also: