The Central Bank should not proceed with plans requiring homebuyers to have a 20% deposit in place before being approved for a home loan, according to SIPTU General President, Jack O’Connor.

The Central Bank is expected 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.

Jack O’Connor said: “If implemented as currently envisaged, these plans would put home ownership beyond the reach of thousands of individuals and couples. They would in fact make it the exclusive preserve of the better-off, those able to access inherited wealth and of serial investors. 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.”

SIPTU calls on Central Bank to abandon plans for 20% mortgage deposit