First-time buyers are the only sizeable section of people still in the housing market. Lenders say investors number only about one third of what would be considered normal, while far fewer than normal are trading up. First-time buyers, however, are the exception.

As yet, the number of mortgage applications from younger people has shown no decline despite growing job losses across different sectors of the economy and worries that house prices may decline. Many lenders are anticipating a slowdown - indeed, that is why many are still quite aggressively cutting interest rates and competing for business. For the moment, many are taking advantage of the slight easing in house prices as builders throw in white goods to clear schemes and of the absence of competition from investors.

In addition, interest rates are heading towards historic low levels. As a result lenders are less cautious than they might otherwise be in a downturn.

There have been few problems yet and lenders say even those in trouble with their loan can usually afford to repay their interest if not their capital. For example, someone with a £100,000 (126,974) loan may have to repay £5,000 (6,349) in interest or about £400 (508) a month. It would be hard to rent alternative accommodation for that amount and lenders say that few people get into so much trouble that it is unpaid. AIB, which many brokers consider to be quite a cautious lender, is still lending 30 or 35 per cent of a borrower's net income.

Lenders say that with current prices, the old multiples of two and half times one income plus the second simply would not buy most people a home in Dublin.

Net income is more relevant in these examples. For example, if a person's after-tax income is £1,500 (1,905) a month, the banks would lend an amount where the repayment is £450 (571) if the 30 per cent rule applied. Different banks work this out assuming different interest rates. AIB, for example, is quite conservative and assumes a rate of 7.5 per cent which allows for some flexibility if rates were to increase. This example would allow for a loan of around £60,000 (76,184).

Other lenders use current interest rates, which are far lower. If the above example were used at a rate of 5.5 per cent, the bank would lend almost £75,000 (95,230). However, if 35 per cent were used in the above examples the amounts lent would be closer to £70,000 and £85,000 (88,882 and (107,928). Most lenders allow the higher net figure on salaries over around £30,000 (38,092). Salaries with built-in increases above inflation are also looked on favourably. Some lenders, particularly for those on higher salaries, will lend as much as 40 per cent of net salary but this is usually more difficult to negotiate.

Other variables are how the lender takes into account other loans. Some brokers say that lenders have been tightening up quite considerably on this area. This would mean, for example, that a car loan of £200 (254) would be taken out of the salary. So if the net income is £2,000 (2,539) but a car loan is £200 (254), the lender will assume your net income is £1,800 (2,286), reducing the amount you can borrow. Other lenders could consider you a risk if you have a lot of small borrowings and are likely to decline a loan. Brokers also report that more first-time buyers are being told to choose between having the car loan or a mortgage. Many have had to sell newly acquired cars as a result.