Dáil Éireann Debate, Wednesday - 20 September 2017
196. Deputy Michael McGrath asked the Minister for Finance if banks (details supplied) allow their existing mortgage customers on a variable interest rate linked to their loan-to-value ratio or on a loan-to-value interest rate to move down to a lower loan-to-value band on the basis of an up-to-date valuation of their home and, therefore, benefit from the lower interest rate associated with that lower loan-to-value band. [39904/17]
View answerAs the Deputy will be aware, the Central Bank of Ireland introduced an Addendum to the Consumer Protection Code 2012 in February of this year. These new regulatory provisions are designed to better inform and protect rate mortgage holders in relation to changes in variable mortgage interest rates (excluding tracker interest rates). Under these provisions, lenders are now required to provide a Variable Rate Policy Statement to borrowers. This document details to borrowers how their variable interest rate has been set and what factors may result in changes to their variable interest rate.
In addition, when issuing an annual statement of account on the mortgage or when notifying the borrower of a change in their variable mortgage interest rate, a lender must now also provide the borrower with a summary of other available mortgage products that the lender offers that may provide savings for the borrower at that point in time, details of where the borrower can obtain further information on these mortgage products, and the lender is also required to provide a link to the Competition and Consumer Protection Commission's website relating to switching lenders or changing mortgage type.
However, within the regulatory and legal framework which governs residential mortgages and private contracts more generally, the setting and adjustment of variable and other mortgage interest rates will be a contractual and commercial matter for the parties to the mortgage contract. I have no role in relation to the detailed terms of mortgage contracts entered into by individual lenders. However, if a person is not happy with the way a regulated lender is dealing with their mortgage the person can invoke the complaints resolution framework of the Consumer Protection Code and which can include, if necessary, taking the case to the independent Financial Services Ombudsman.
