First, borrowers also have to satisfy the LTI requirement: for many households, this will limit the capacity to increase the mortgage size. Second, under the current system, a significant fraction of first-time buyers in this category were receiving allowances, such that the actual LTV ratios were not far below the new 90 per cent limit.
Under the new system, a maximum of only 5 per cent of new loans to first-time buyers can exceed the LTV ceiling. Third, many first-time buyers opt for mortgage loans below the LTV ceiling: for loans above € in value, 73 per cent of borrowers put down a deposit in excess of the required minimum.