Dáil Éireann Debate, Tuesday - 7 May 2013
143. Deputy Dominic Hannigan asked the Minister for Finance if he has any plans to assist homeowners who are in negative equity on their homes but need to move due to changing family circumstances but are unable to sell or get a new mortgage; and if he will make a statement on the matter. [21350/13]
View answerThe Central Bank has advised me that it has engaged with mortgage lenders in relation to negative equity mortgages to develop a mortgage product that would allow home owners to sell their existing home and transfer the negative equity portion of the original loan to the new loan. In order to ensure that proposals in relation to such mortgages are consistent with the Central Bank’s consumer protection and prudential policy objectives, the proposed criteria for any such facility need to be agreed in advance between mortgage lenders and the Central Bank. While the provision of negative equity mortgages will facilitate people moving homes and generate transactions in the housing market, it is not expected that there will be a large take up of this product, as all sales must comply with the affordability and suitability provisions set out in the Consumer Protection Code. It should however be noted that a decision to introduce a negative equity type product is a matter for each mortgage lender and is based on commercial and policy considerations. At present some lenders are offering this product, while others are considering making such a product available.
