The Central Bank has advised that it does not comment on the commercial decisions of individual regulated entities.
Where a loan is sold or transferred to another regulated entity, it will be subject to the terms of the credit agreement and the protections that were available to borrowers prior to the transaction will also continue to be in place with the new owner. It is worth noting that under the Consumer Protection (Regulation of Credit Servicing Firms) Act 2018 if a loan is transferred or sold, the holder of the legal title to the credit must be regulated and must act in accordance with Irish financial services law that applies to ‘regulated financial service providers’. This ensures that consumers whose loans are sold or transferred, maintain the same regulatory protections that they had, including under the various Central Bank statutory Codes of Conduct, such as the Consumer Protection Code 2012 and the Code of Conduct on Mortgage Arrears 2013 (CCMA).
In circumstances where a regulated entity offers an incentive to a consumer when taking out a mortgage, Provision 6.12 the Consumer Protection Code 2012 requires that the regulated entity must provide the personal consumer, on paper or on another durable medium, with the information needed to consider the incentive being offered.
This information must:
a) Quantify the implications for the personal consumer of availing of the incentive including an indicative cost comparison of the total cost of the existing mortgage or new mortgage credit if they do not avail of the incentive and the total cost of the mortgage if they avail of the incentive;
b) Clearly set out the length of time during which the incentive will be available;
c) Clearly set out any assumptions used, which must be reasonable and justifiable;
d) Set out the advantages and disadvantages to the personal consumer of availing of the incentive;
e) Include other key information which the personal consumer should have available to them when considering the incentive; and
f) Include a statement that the personal consumer may wish to seek independent advice prior to availing of the incentive.
The continued application of preferential mortgage rates is governed by the underlying terms and conditions of the mortgage contract.
