Second-time buyers in Ireland have been hit by new changes to mortgage lending restrictions. Irish Central Bank Governor Philip Lane left the rules much as they are, but he did make a slight adjustment to how the exemptions to the lending limits work. This will largely hit the ‘trapped generation’ who are trying to trade up their home.

Most buyers will still be restricted to borrowing no more than three-and-a-half times their income. First-time buyers will still be required to have a deposit of 10%, with a 20% deposit needed by second-time, and subsequent, buyers.

But there are exemptions to the rules. Until now, banks were able to allow 20% of all borrowers an exemption from the income limits. This exemption did not distinguish between new and second-time buyers. The exemptions allow the likes of a newly qualified doctor to avoid the income limit, as their income is expected to rise.

However, the regulator has now said that banks would be allowed to exempt only 10% of second-time buyers from the income-limit rules, but banks will be able to exempt up to 20% of first-time buyers from the rules, if they qualify for an exemption.