Dáil Éireann Debate, Tuesday - 21 May 2024
79. Deputy Aindrias Moynihan asked the Minister for Finance if he is aware of difficulties persons are having in securing bridging finance products from the banking sector to secure a new home for downsizing while they are awaiting sale of their current home; and if he will make a statement on the matter. [22720/24]
Amharc ar fhreagraThere are a number of regulatory measures which apply to the provision of new residential mortgage credit, including bridging finance for such a purpose, to consumers. These include the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 and the Central Bank Consumer Protection Code (2012).
These measures place a number of obligations on lenders in relation to the provision of residential mortgage credit including the requirement to:-
• where relevant, obtain relevant information from the borrower on his/her needs and objectives, personal circumstances and financial situation;
• assess the affordability of credit and the suitability of a product or service based on the individual circumstances of the borrower;
• provide credit only where the creditworthiness assessment indicates that the borrower is likely to meet his/her obligations in the manner required under the credit agreement.
Within the parameters of this regulatory framework, the decision to provide a particular loan product and to grant an individual application for mortgage credit is a commercial decision to be made by the individual regulated entity.
I have been informed that the Central Bank of Ireland understands that some providers offer bridging finance, but not all providers offer this service. Within the applicable regulatory framework, it is a matter for each lender to set its own credit policies and to make its own lending decisions on applications for mortgage or other kinds of credit.
