Dáil Éireann Debate, Tuesday - 29 May 2018
158. Deputy Michael McGrath asked the Minister for Finance the position on allowing mortgage holders make their normal repayments on a weekly or fortnightly basis as opposed to monthly in an effort to reduce their interest bill; and if he will make a statement on the matter. [23169/18]
Amharc ar fhreagraMortgage and other loan agreements will contain terms for the repayment of the credit, including in relation to the timing and frequency of the repayments. It would also be open to the parties to agree any adjustment to the repayment terms as considered desirable during the life of the credit agreement.
The Central Bank advises that there are no particular regulatory measures governing the frequency of mortgage repayments and that these would be contractual matters for the parties to the credit agreement. Nevertheless, it could also be noted that, more generally, a consumer borrower has the right to discharge, either fully or partially, his or her obligations under a mortgage credit agreement prior to the expiry of that agreement. In such cases, the consumer shall be entitled to a reduction in the total cost of the credit (consisting of interest and costs) arising from that early repayment for the remaining duration of the contract. However, in certain circumstances where the interest rate is fixed for a period of time the lender may be entitled to compensation arising from the early repayment of some or all of the outstanding credit amount.
