The Irish mortgage market has been shaken up following the announcement that Núa Money will offer certain first-time buyers mortgages of up to five times their income/ salary. This is something not seen in Ireland since before the financial crash.
For many buyers struggling with rising house prices, this could give them additional bargaining power. For others, it has raised uncomfortable memories of the Celtic Tiger years.
So what exactly is changing, who could qualify, and is borrowing 5 times income mortgage actually a good idea?
What Are the Current Central Bank Mortgage Lending Rules?
Under current Central Bank of Ireland mortgage rules First-time buyers can generally borrow up to 4 times gross annual income and second time buyers up to 3.5 times income.
Lenders are allowed to exceed these limits for a limited percentage (up to 15%) of cases through what are called Loan-to-Income (LTI) exceptions. Exceptions are available for both first-time and second time buyers alike.
For example:
- A couple earning €100,000 combined can usually borrow up to €400,000
- Under a 5x exception, that same couple could potentially borrow €500,000
That extra borrowing power could make a significant difference in markets like Dublin, Cork, Galway, and commuter counties where property prices continue to outpace wage growth.
What is Núa Money Actually Offering?
Núa Money has announced it will allow selected first-time buyers to borrow up to 5 times income under its exception policy.
According to the lender, applicants will still need to meet strict criteria, including:
- Strong repayment capacity
- Stable employment
- Clean credit history
- Evidence of affordability
- Case-by-case underwriting assessment
The lender has also stressed that this is not intended to be a return to reckless pre-2008 lending.
Haven’t Mortgage Exceptions Already Existed?
Yes, and this is an important point many headlines have missed.
Irish lenders have already been allowed to issue mortgage exceptions for years. Most major banks already offer some borrowers 4.5x or even as high as 4.75x income under exception rules.
In reality, exceptions are tightly controlled and make up only a portion of a lender’s mortgage book.
Why This Matters for First-Time Buyers?
House prices remain extremely high, rent levels make saving difficult and single applicants are particularly disadvantaged. Also, many buyers can comfortably afford repayments but cannot meet borrowing limits.
For some borrowers, especially higher earners with strong financial discipline, a 5 times income exception could bridge the gap between continuing to rent and finally buying a home.
A single buyer earning €70,000 could potentially increase their borrowing capacity from €280,000 to €350,000 which is a major difference in today’s competitive property market.
What Are the Risks to Borrowing 5x Salary
Higher borrowing always comes with higher risk.
Borrowing 5x income may significantly increase:
- Monthly repayments
- Exposure to future interest rate rises
- Financial pressure after having children or changing jobs
- Long-term repayment costs
There is also concern that increased borrowing power could simply push house prices even higher if supply remains constrained.
Reaction online has been mixed, with some welcoming the flexibility while others fear it could inflate prices further or encourage overstretching.
The reality is that just because a borrower can borrow more does not always mean they should.
Who is Most Likely to Qualify for 5 Times Income Exception?
Based on current market trends, 5 times income exceptions are most likely to favour borrowers who:
- Have strong and stable incomes
- Work in professional or secure sectors
- Show excellent savings patterns
- Have minimal existing debts
- Maintain clean credit histories
- Can demonstrate strong repayment capacity even under stress testing
These cases are likely to remain the exception rather than the norm.
What Should Buyers Do Now?
For buyers considering a mortgage exception, the key is understanding how this works. This is where working with a broker becomes especially valuable.
A good broker can assess:
- Which lenders are currently offering exceptions
- Which applicants are most likely to qualify
- Whether a higher borrowing amount is financially sustainable
- Alternative options that may reduce risk
Núa Money’s announcement is one of the biggest talking points in the Irish mortgage market in years.
For some buyers, it could genuinely improve access to home ownership in an increasingly unaffordable market. For others, it raises legitimate concerns about affordability and house price inflation.
What is clear is that the Irish mortgage market is evolving and buyers now have more options than before.
But regardless of how much a lender is willing to offer, the most important number is still the repayment amount that allows you to sleep comfortably at night.
Contact Mortgage123 directly to discuss availability of exceptions at the moment and see if you may qualify.