Mortgage Lending

Dáil Éireann Debate, Tuesday - 4 July 2017

Tuesday, 4 July 2017

Questions (116)

Joan Burton

Question:

116. Deputy Joan Burton asked the Minister for Finance if his attention has been drawn to the practice by certain mortgage providers (details supplied) to only seek exemption from Central Bank mortgage lending guidelines for prospective buyers seeking an exemption of more than €40,000 greater than the standard loan-to-value or income ratio; if his attention has been further drawn to the fact that this penalises families seeking minor and modest derogation from income and loan-to-value limited; and if he will make a statement on the matter. [31491/17]

Written answers

Minister for Finance

The Deputy will be aware that I, as Minister, have no direct function in the relationship between PTSB and its customers. Commercial decisions taken by the bank around mortgage lending exemptions are a matter for the board and management of the bank. Notwithstanding the fact that the State is a shareholder in PTSB, I must ensure that the bank is run on a commercial, cost effective and independent basis to protect the value of the bank as an asset to the State. A Relationship Framework has been specified that defines the nature of the relationship between the Minister and PTSB.  This Framework, as published, can be found at:

http://www.finance.gov.ie/what-we-do/banking-financial-services/shareholding-management-unit/permanent-tsb/relationship