Oireachtas Joint and Select Committees

Wednesday, 9 April 2014

Joint Oireachtas Committee on Finance, Public Expenditure and Reform

Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB

1:25 pm

Photo of Kevin HumphreysKevin Humphreys (Dublin South East, Labour) | Oireachtas source

I thank the delegates for their presentations and for the large volume of information they provided prior to the meeting which avoided the need for many questions.

I know this issue is dealt with as a matter of priority in the banking sector. As was touched on earlier, it is an issue that has arisen with the increase in the number of partnership break-ups and divorces. The bank has what it would deem as performing loans in that mortgage repayments in these cases are being met. However, when one of the parties asks for their name to be taken off the property deeds or the loan, that party is refused even though the mortgage is performing. I know of examples of cases where people have been separated two or three years and one of the parties has not been contributing towards the mortgage repayment, but the person who has remained in the home is paying the mortgage and it is performing. As far as the bank is concerned, the mortgage is doing well. However, when an application is made for one of the parties to come off the mortgage, that party is refused on affordabilty grounds. Those people's lives are on pause. They may have already entered a new partnership and have a second family but they cannot move on with their lives because they are tied to that deed. It is a small aspect of the issue but an important one for people who cannot move on in their lives and have had their lives on pause for the last three or four years. Has the bank considered that element?

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