New lending rules for buying property in Dubai have been issued by the UAE central banks with limits for both local and foreign buyers that require a mortgage.

UAE nationals seeking a mortgage for a first property will be able to get an 80% LTV mortgage for properties worth up to Dh5m (£850,000) and lower, but only a 70% LTV for more expensive properties.

A UAE national wanting to buy a second property will be limited to a maximum of 65% LTV mortgage regardless of its price.

Expats living in the UAE buying a first property will be able to borrow up to 75% of the value of the property if it costs Dh5m or less and 65% for properties worth more. For a second property the limit has been put at 60%.

However, mortgage applicants buying off plan will be limited to a maximum LTV mortgage of just 50%. The new rules also set a maximum loan period of 25 years and the maximum age for the borrower at the time of the last instalment will by 70 years old for UAE nationals and 65 for expats.