The head of the central bank in the United Arab Emirates has said that new restrictions on mortgages may be changed after protests by the nation’s lenders.

The central bank issued new rules at the end of December last year that restricted mortgages for expatriates to 50% of the value of a first home and 40% for the second. Limits were also tightened for UAE nationals to 70% LTV for a first dwelling and 60% LTV for a second.

‘The central bank is not taking a binding position and is listening to what the banks have to say’, Governor Sultan al-Suwaidi said at a conference in Abu Dhabi. He added: ‘What was published was not an order. The system that will be put in won’t necessarily be according to the percentages that we published.’

Banks are lobbying to increase the loan amounts to spur a recovery in credit growth four years after Dubai property prices crashed amid the global financial crisis. They’re recommending the central bank raise the limits for expatriates to 75% LTV and 60% LTV, while UAE nationals should be allowed to borrow at 80% LTV and 65% LTV for second homes.