Mortgage Lending

Dáil Éireann Debate, Monday - 11 September 2017

Monday, 11 September 2017

Questions (153)

Michael McGrath

Question:

153. Deputy Michael McGrath asked the Minister for Finance the Central Bank policy on banks providing bridging finance to elderly persons wishing to downsize to another property; if his attention has been drawn to the fact that such persons, many of whom have very significant positive equity, have to sell their home before they can purchase a smaller, more suitable property and that this is acting as a deterrent to them proceeding; and if he will make a statement on the matter. [37952/17]

Written answers

Minister for Finance

Residential mortgage lending to consumer borrowers, including bridging finance which is provided for a housing purpose, has to comply with the legislative and regulatory provisions which govern such lending, including the relevant provision of the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 and the Consumer Protection Code.  However, within this framework it then remains a policy and commercial decision of the Boards and management of individual lenders to decide on the particular type of housing related credit products or agreements they wish to offer to prospective borrowers.  Therefore, while the existing legal and regulatory framework does not prevent lenders from offering and providing bridging finance for a housing purpose, the decision on whether or not to assume the particular commercial risk (and the associated potential commercial gain) associated with such lending will be one for the individual lender.