Central Bank Exempts Principal Home Bridging Loans from LTI Limit

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Central Bank – Targeted Amendment to Mortgage Measures for Principal Home Bridging Loans

08 April 2026 Press Release

The Central Bank of Ireland today announced details of a targeted amendment to the mortgage measures that will exempt certain principal home bridging loans from the Loan-to-Income (LTI) limit (PDF 151.2KB). The Loan-to-Value (LTV) limit will continue to apply to these products, and all other elements of the mortgage measures remain unchanged.

The amendment recognises that bridging finance products are a feature of the evolving Irish mortgage market and ensures that the regulatory framework adapts appropriately to continue to support market functioning without compromising lending standards or resilience of borrowers and lenders in the mortgage market.

Within the measures, a principal home bridging loan is a short-term loan (with a maximum term of 18 months) that facilitates existing homeowners to purchase a new principal home before completing the sale of their current property. Unlike standard mortgages, these loans are repaid from the proceeds of the property sale rather than from regular income.

Deputy Governor Vasileios Madouros said: "This targeted amendment reflects our commitment to ensuring the mortgage measures remain fit for purpose as the market evolves. Bridging loans serve a purpose in helping homeowners move between properties, and the LTI limit is less relevant for products where repayment comes from asset sale proceeds rather than regular income.

All other elements of the mortgage measures are unchanged. This is a proportionate response to market developments that maintains our core objectives of sustainable lending."

The mortgage measures do not aim to replace lenders’ own prudent underwriting criteria. Lenders must continue to assess the suitability and affordability of bridging loans for individual borrowers. Consumer protection rules also apply in full to these products. Borrowers must be fully informed of the risks, and lenders must ensure that bridging finance is appropriate for each customer's circumstances.

The Central Bank will monitor the operation of the exemption. This monitoring will form part of the Bank’s ongoing regular assessment of the mortgage measures to identify any unintended consequences or emerging risks.

The amendment was developed following engagement with civil society stakeholders and with industry.

ENDS

Notes to Editors

About the Mortgage Measures

The mortgage measures are macroprudential regulations that set limits on mortgage lending to support sustainable lending standards and protect the resilience of borrowers and the financial system. The current framework includes:

• Loan-to-Income (LTI) limits: Maximum of 4 times gross annual income for first-time buyers; 3.5 times gross annual income for second and subsequent buyers
• Loan-to-Value (LTV) limits: Maximum of 90% for principal home mortgages; 70% for buy-to-let properties
• Flexibility allowance: Lenders may allocate up to 15% of the value of FTB/SSB lending to loans that exceed the limits; 10% for BTL lending About Principal Home Bridging Loans

Principal home bridging loans are short-term financing arrangements that allow existing homeowners to purchase a new principal home before completing the sale of their current property. Key characteristics include:

• Maximum term of 18 months
• No requirement to make capital repayments during the term
• Repayment from the proceeds of selling the original property Further Information

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Elaine Scanlon 087 2136313 [email protected] / [email protected]