Central Bank says its mortgage controls are working

“Recent developments in new mortgage lending show a shift towards loan-to-income (LTI) and loan-to-value (LTV) limits, but the share of new lending in the most risky categories is contained,” he said. “Borrowing levels relative to incomes continue to be materially lower than in the early part of this century.”

Households have weathered the period of higher interest rates, he added, with the amount of income spent on debt repayments remaining stable. He stressed that a shock to international trade could have knock-on effects for the labour market here, as well as the performance of domestic firms.

“Irish small and medium-sized enterprises (SMEs) have shown resilience, but there are pockets of risk, for example with insolvencies rising in the accommodation/food and other services sectors although we have continued to observe employment growth in these sectors,” he said.

The relatively high number of workers in the multinational sector who have mortgages is something we…

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