A story published in today's Independent.ie informs that the mortgage affordability in Ireland has reached the levels of 1996 for the first time home buyers. In 2006, when Ireland experienced a housing boom, the first time buyers were spending about 2/3 of their income on mortgage. Now things are different.
Independent writes
REPAYMENTS on mortgages for first-time buyers are set to fall to just 15pc of disposable income, despite take-home pay being sharply reduced by the measures introduced in Tuesday's crisis Budget, AIB economists said.
However, improved affordability may not be sufficient to outweigh the blow to consumer sentiment after the hit to incomes from the Budget.
Continued falls in house prices and a string of cuts in mortgage rates for those on trackers and standard variable rates have made property more affordable for new buyers, economist John Beggs of AIB said in a briefing note.
New buyers are also benefiting from the hike in mortgage interest relief which took effect from the start of the year. This applies for seven years.
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