Which entity constrains the 90% LTV limit for first-time buyers?

• A. Money laundering regs
• B. Central Bank of Ireland
• C. Lender's resources
• D. None

Answer: (B)

Lending against property is capped by regulator rules designed to curb risk in the mortgage market. In Ireland, the Central Bank sets macroprudential mortgage rules, including the maximum loan-to-value ratios for new mortgages. For first-time buyers purchasing a primary residence, the cap is up to 90% LTV, meaning lenders can’t offer loans larger than 90% of the property’s value to those borrowers. This constraint is imposed by the Central Bank to promote prudence and financial stability, not by the lender’s own preferences or by AML rules. Money laundering regulations focus on verifying funds and customer identity, not on limiting how much can be borrowed against a property. Lenders’ internal resources can influence product availability, but the explicit limit comes from the Central Bank’s rules.