Dáil Éireann Debate, Tuesday - 4 November 2014
276. Deputy Pearse Doherty asked the Minister for Finance the way persons who have already had a mortgage approval or are in the process of buying a house, but may not conclude the sale until 2015, will be affected by the proposed new Central Bank of Ireland rules on mortgage lending; and if he will make a statement on the matter. [41086/14]
View answer315. Deputy Róisín Shortall asked the Minister for Finance his views on the Central Bank of Ireland's recent recommendations regarding conditions attaching to mortgage approval; if those who have already received mortgage approval will be affected; and if he will make a statement on the matter. [41579/14]
View answerI propose to take Questions Nos. 276 and 315 together.
As the Deputies are aware, the Central Bank has commenced a public consultation process on the proposed new macro prudential rules for residential mortgage lending and any person who wishes to make a submission on these proposals can do so by emailing realestate@centralbank.ie by December 8th next.
Regarding the position of consumers who have already been approved mortgages under existing rules but who will not draw down these loans until next year, the following is the position as outlined in the Central Bank consultation paper:
- If a regulated financial service provider has entered into a Mortgage Offer (Sanction in Principle) commitment before the date on which the Loan to Value (LTV)/ Loan to Income (LTI) limits come into effect, the limits do not apply to that commitment. If a regulated financial service provider enters into a Mortgage Offer (Sanction in Principle) commitment after the date on which the LTV/LTI limits come into effect, the limits do apply to that commitment should the mortgage be drawn down.
- Committed but undrawn amounts on an existing mortgage lending facility that was formally agreed via a signed letter of offer before the date on which the LTV/LTI limits come into effect will not be included in the limits.
