For many households, this will limit the capacity to increase the mortgage size.
Second, the scope for exemptions to the LTV limit for first-time buyers has been restricted to just 5 percent of lending to this group, whereas the previous regime allowed 15 percent of lending above the LTV ceilings and did not restrict the allocation of exemptions between the first-time and second-and-subsequent buyer pools: in our analysis, many first-time buyers above the € threshold were receiving exemptions (or were looking for loans below the LTV ceiling) so that previous rule was not fully binding.