Maureen O'Sullivan (Dublin Central, Independent)
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156. To ask the Minister for Finance his views that the requirement for a 20% deposit is prohibitive for many, and if the pre-existing equity tied up in persons' homes for which they are still paying could be utilised in the purchase of necessary new and larger homes; and if he will make a statement on the matter. [43751/14]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware, the Central Bank of Ireland has published a consultation paper regarding macro-prudential measures for residential mortgage lending in Ireland. The Central Bank measures, as set out in the consultation document, would place restrictions on the loan to value (LTV) and loan to income (LTI) ratios banks can apply when lending for house purchase.

A copy of the Consultation Paper is available on the Central Bank website (at ) and comments on the paper can be made electronically to by 8 December 2014.

The Central Bank has proposed that banks will be able to lend, in some instances, above these threshold limits. However, the proposals state that any lending in excess of the loan to value ratio must be limited to no more than 15% of the value of new loans issued and, in respect of exceeding the loan to income ratio, to no more that 20% of the value of new loans. The Central Bank consultation paper indicated that other exemptions will also be available in cases of switcher mortgages (which, allowing for reasonable fees and costs, would not increase the principal), alternative repayment arrangements or other options to address a mortgage repayment difficulty, or residual debt from negative equity mortgages. Any equity realised by a borrower arising from the sale of a house will be available to the borrower to use, if s/he so decides, as the deposit, for the purchase of a new house.