Labour has welcomed the new criteria for mortgages announced by the Central Bank.

Central Bank announced people will only be granted home loans equivalent to three-and-a-half times their income.

Senator Marie Maloney said: "When I was seeking to purchase the family home many years ago we were only granted two and a half times our income and we must never, ever, revert back to the era of reckless bank lending, lending high amounts of monies to people who could never realistically pay it back.

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"In welcoming the news that mortgages are to be linked to the applicants income, I would point out however that I feel that a 20% deposit is too high as most young couples would not be able to come up with that amount and I suggest that the time people, who are applying for a mortgage and who have been in private rental accommodation, be taken into account.

"These people especially young couples who are striving to purchase their first family home be given at least 90% mortgage as they would find it impossible to get a deposit together as they would have spent it on private rent."

(CD/JP)