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Banking Sector

Dáil Éireann Debate, Tuesday - 21 May 2024

Tuesday, 21 May 2024

Ceisteanna (79)

Aindrias Moynihan

Ceist:

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 fhreagra

Freagraí scríofa

There 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.

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