Niall Collins
Ceist:215. Deputy Niall Collins asked the Minister for Finance if advice and assistance can be provided to a person (details supplied); and if he will make a statement on the matter. [33276/18]
Amharc ar fhreagraTuesday, 24 July 2018
Ceisteanna (215)
Freagraí scríofa
There are certain legislative and regulatory provisions governing the provision of residential mortgage credit in Ireland to consumer borrowers. One of the key measures is the Central Bank of Ireland macro-prudential measures which apply proportionate loan-to-value (LTV) and loan-to-income (LTI) limits to mortgage lending by regulated financial service providers. For principal dwelling home mortgages, the LTI limit is set at 3.5 times gross income and the LTV limit is 90 per cent of the value of the property for first time buyers and 80 per cent for second and subsequent buyers. (Lenders have a certain limited flexibility to exceed these thresholds at their discretion). For buy-to-let mortgages, the LTV limit is 70 per cent of the value of the property (and there is also a discretion available to lenders to provide up to 10 per cent of new lending above this limit). Further information on the macro prudential rules on residential mortgage lending can be found at on the Central Bank website at https://www.centralbank.ie/financial-system/financial-stability/macro-prudential-policy/mortgage-measures.
Also the Mortgage Credit Directive (which is transposed into Irish law by the European Union (Consumer Mortgage Credit Agreements) Regulations 2016) provides for some common EU measures in relation to the provision of residential mortgage credit to consumers, including some measures in respect of foreign currency mortgages. (For the purpose of the Directive and transposing Regulations, a foreign currency loan is a mortgage where the credit is denominated in a currency other than that in which the consumer receives the income from which the credit is to be repaid, or is in a currency other than that of the EEA Member State in which the consumer is resident). The Regulations apply to any relevant credit agreement entered into from 21 March 2016 and, in respect of a foreign currency loans, it requires that mortgage lenders must at least ensure that they either (i) provide to the consumer borrower a right (if conditions specified by the creditor are met) to convert the loan into an alternative currency or (ii) there are other arrangements in place (such as risk warnings or limits on the amount the consumer has to pay under the agreement) to limit the exchange rate risk to which the consumer is exposed under the foreign currency credit agreement.
Subject to complying with all relevant legislative and regulatory requirements in relation to the provision of mortgages, it is a matter for lenders to formulate their own mortgage credit lending policies and to make their own individual mortgage lending decisions. Ultimately, the decision on whether or not to provide credit, or the amount of credit to offer, in any particular case is a commercial decision for the individual lender. As Minister for Finance, I would not have a role in such commercial decision making by commercial mortgage lenders.