Spokesperson Michael McGrath said the rules could potentially trap non-first time buyers as they do not take account of the complex housing needs that many people currently face.
Deputy McGrath said: "The Central Bank statement indicates 'mortgages for non-first time buyers are subject to a limit of 80 per cent LTV'. In the absence of any clarification from the Central Bank, this would appear to mean that anyone who already has a mortgage and wishes to move home for whatever reason needs a 20% deposit in respect of the new mortgage. Due to the fall in house prices during the recession, many families have seen the equity in their home eroded making it close to impossible for them to come up with a required 20% deposit if they need to move home.
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"This could result in an entire generation of people being trapped in houses and apartments which are no longer suitable for their needs even though they have demonstrated a clear capacity to meet their existing mortgage payments. It is simply unfair that a family who may never have missed a mortgage payment and now wishes to move to a new home is faced with an onerous 20% deposit requirement on the value of the new mortgage. For a family wishing to trade up to a €350,000 home they will now need to have €70,000 in cash having cleared their first mortgage with the proceeds from the sale of their home. This will prove impossible for many families."
(CD/MH)
