Dáil Éireann Debate, Thursday - 18 January 2018
59. Deputy Michael McGrath asked the Minister for Finance if he is satisfied with the manner in which financial institutions deal with customers in situations in which a couple have separated and both their names remain on the mortgage account;; and if he will make a statement on the matter. [2632/18]
View answerThe terms of a credit agreement will generally set out the rights and obligations of the borrower and lender parties to the contract, including the liability of the borrower for the repayment of the loan. In that context, the Central Bank has advised that, in general, both parties to a joint mortgage are jointly and severally liable for the debt.
However, in respect of separated borrowers in or facing mortgage arrears on their primary residence, the Central Bank's Code of Conduct on Mortgage Arrears (CCMA) will apply. The CCMA provides that in the case of joint borrowers who notify the lender in writing that they have separated or divorced, the lender should treat each borrower as a single borrower under this Code (except to the extent that an action requires, as a matter of law, the agreement of both borrowers).
