AIB’s Mulhall cautions on annual mortgage-cap reviews

Bank says annual changes may lead to price distortions in the housing market

Robert Mulhall AIB MD Retail & Commercial Ireland. Photograph: Alan Betson

Robert Mulhall AIB MD Retail & Commercial Ireland. Photograph: Alan Betson

AIB’s head of Irish retail and commercial banking, Robert Mulhall, has said that the Central Bank’s strategy of reviewing its mortgage cap rules on an annual basis may lead to house price distortions as customers try to second guess the regulator.

Speaking in an interview with The Irish Times this week, Mr Mulhall said that while AIB supports mortgage restrictions, introduced in 2015, the combination of reviewing them annually, alongside speculation heading into budgets, can prompt would-be buyers to accelerate or delay plans.

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