Decisions in relation to mortgage lending, including the length of time for which a mortgage offer is valid and the conditions that have to be met for the drawdown of a mortgage loan, are commercial matters for the individual lender.
These decisions are subject to compliance with the legal and regulatory framework in relation to the provision of mortgages.
Provision 4.29 the of the Consumer Protection Code provides that, where a Central Bank regulated entity offers a mortgage to a personal consumer, the regulated entity must include certain information in the offer document including:-
- the interest rate that applies to the mortgage at the date of offer;
- where there is a possibility that the interest rate set out in the offer document may not be the interest rate applicable when the mortgage is drawn down, that must be clearly highlighted (and the offer document must also outline the circumstances that would result in such a change to the interest rate);
- the length of time for which the mortgage offer is valid, assuming that all details provided by the personal consumer are valid and do not change.
More generally, the Central Bank has stated that it expects that all regulated entity’s take a consumer-focused approach in respect of any decision that affects their customers (existing and new) and communicate clearly, effectively and in a timely manner with all customers.
