Tuesday, 18 June 2019

Questions (139)

Michael McGrath

Question:

139. Deputy Michael McGrath asked the Minister for Finance if a borrower is still considered a private dwelling house borrower or a buy-to-let borrower in the mortgage arrears statistics of the Central Bank in cases in which a borrower originally lived in the house and due to arrears subsequently moved out in order to try to pay the mortgage arrears; and if he will make a statement on the matter. [24947/19]

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Written answers (Question to Finance)

I am advised by the Central Bank of Ireland that the compilation notes for the mortgage arrears statistics define PDH and BTL mortgages as follows:

Principal Dwellings (PDH):

Mortgage loans to private individuals for house or apartment purchase, renovation, improvements or own construction of housing, fully and completely secured by mortgage on the residential property, which is or will be occupied by the borrower.

Buy-to-Let (BTL):

Mortgage loans to private individuals for house or apartment purchase, renovation, improvements or own construction of housing, fully and completely secured by mortgage on the residential property, which is or will be let for residential purposes by the borrower. The BTL format should also include mortgages secured on properties which are or will be used as holiday homes or second homes.

In the example provided in the Parliamentary Question, given that the property is not owner occupied it is expected this would be reported in the BTL category. Such cases retain the protections provided under the Central Bank Code of Conduct on Mortgage Arrears where the property is the only residential property in this State owned by the borrower.