Dáil Éireann Debate, Tuesday - 2 April 2019
110. Deputy Jackie Cahill asked the Minister for Finance the reason a salary for contract employment with the HSE is not taken into account by banks when an employee is applying for a mortgage; and if he will make a statement on the matter. [14773/19]
View answerIn considering an application for mortgage credit, there is a requirement on lenders to obtain relevant information on the borrower’s financial needs and objectives, personal circumstances and financial situation, including the person’s income and other relevant financial information. Based on the borrower’s income and expenses and other necessary and relevant financial and economic circumstances, the lender is then obliged to carry out an assessment of the credit worthiness of the borrower and the lender may only make credit available to the borrower where it considers that the borrower is likely to meet the obligations of the loan in the manner required under the loan agreement. However, subject to compliance with these and the other applicable regulatory framework governing the provision of mortgage credit to consumers, it remains a commercial matter for each lender to formulate its own overall credit policies and to make its own decisions on individual loan applications.
In this context, I am advised by the Central Bank that each institution has its own credit policies and risk appetite for lending, and accordingly the specific categories of income which can be included/excluded when considering a mortgage application will vary from institution to institution. However, these are matters for each individual lender and neither I nor the Central Bank of Ireland have a role in such commercial policy decisions made by lenders.
