Mortgage rule barriers for returning Irish: Will they affect you?

Irish people looking to purchase their first house in Ireland are not considered as first-time buyers if they have previously owned a house abroad.

Under the new Central Bank mortgage rules brought in earlier this year, first time buyers can borrow up to 90 per cent of the value of the house, but those who have previously bought a home can only borrow up to 80 per cent of the value.

Minister for Finance Michael Noonan confirmed in the Dáil last month that "a first time buyer is defined as a borrower to whom no housing loan has ever before been advanced (in Ireland or abroad)".

Crosscare, the Dublin-based charity which provides support and advice to Irish emigrants, said the new mortgage restrictions could deter Irish people from returning to live here from abroad.

Crosscare’s policy officer Joe O’Brien says the issue had been raised with them by organisations working with Irish emigrants in Australia.

“We’re concerned that Irish people who emigrated in the recession and were unable to buy a home here then might be faced with tougher rules if they are now looking to return. For example, a couple who own a house in Australia and decide they want to return to Ireland will have to come up with a much larger deposit to buy their first home here.”

For a €300,000 property, a first-time buyer needs a €38,000 deposit. An emigrant who bought a house abroad would need a €60,000 deposit to buy one in Ireland on return.

“We feel this could be a very significant barrier to people coming home as the costs of moving a household can be very expensive in the first place,” he says.

Have your say: Would these rules impact on your decision to move home to Ireland? Let us know in the comments section below.