Ciarán Lynch (Cork South Central, Labour) | Oireachtas source

Before I bring in Senator Thomas Byrne on the second round of questions, which will be ten minute slots, I wish to make two statements. The communications unit is reporting to me that there is a good deal of telecommunications interference in the room and that many speakers who are talking are not being picked up because their mobile telephones, laptops or iPads are creating distortions in the room. I remind members to have them switched off. Many people are watching us this evening and what is being discussed is of great importance. It would be an awful tragedy if much of that commentary was lost because a mobile telephone was turned on. I echo the same statement to the people in the public gallery because the same interference is coming from the public gallery. I remind everyone to have their telephones turned to flight mode or turned off completely.

I wish to clarify something dealt with during the first round of questions. The approach to the split mortgage seems to be at variance between different financial institutions. Under the AIB modelling Mr. Duffy referred to a split mortgage that allows a payment that is greater than the insolvency payment. The couple in question have approximately €200 per month more than they would have if they went into an insolvency arrangement. That arrangement has them paying back approximately €770 or €780 per month for the next 35 years, which brings them up to retirement age. It means that the sum paid in repayments on the split mortgage is in excess of the outstanding sum before the split minus interest. There are two questions people need to know. What happens the €96,000 when somebody hits retirement? In that case approximately €100,000 is split. The person becomes activated again on the year of retirement. What actually happens with that?

The other question relates to a common practice. As part of the resolution process on a split mortgage, is the household income inclusive of mortgage protection and house insurance? I assume that is the case but I seek confirmation. Having examined the figures it seems if people took the insolvency route the finances would be a little tighter by €200 per week but after six years they would be out of the process, whereas the AIB model would have them tied in for nearly 35 years. The insolvency option looks far more attractive than the AIB split mortgage option based on the modelling provided today.