Michael Creed (Cork North West, Fine Gael) | Oireachtas source

I thank the representatives of Ulster Bank for their presentation. Much of our emphasis has understandably been on the 19% of borrowers who are in arrears of 90 days or longer. I want to focus on the other 81% of borrowers. Mr. Bell spoke about current lending practice and the bank's lending rates in the mortgage market. It is difficult to put all of the aforementioned 81% of borrowers in the same boat but a significant number are under enormous pressure to balance electricity bills, gas bills, school expenses and car and health insurance in order to pay their monthly mortgage repayments. Is the bank stress testing these borrowers in regard to their ongoing capacity to repay their mortgages? In the context of how a mortgage applicant would be evaluated today, Mr. Bell indicated that up to 40% of disposable income is used as the basis for repayment capacity. How many of these borrowers are paying more than 40%? How many are paying 50% or 60% of their disposable incomes to remain on the right side of the line? What is his prediction in regard to how many of that cohort are likely to fall into the arrears bracket in the next three months?