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

I thank Mr. Brown and his colleagues for their presentation. I have a number of questions primarily on the standard variable rate. First, in response to question No. 4 Mr. Brown said that a permanent interest rate reduction has been invoked in zero cases. That strikes me as strange. In most cases the mortgage holder is endeavouring to do their best but often it is the marginal difference that determines whether they can make a payment in terms of the higher or lower rates Ulster Bank charges on mortgages at various stages, be it on the basis of their loan to value, fixed or variable rate. Mr. Brown might comment on that and also on a comment by the previous speaker with regard to mortgage-to-rent. What is the impediment to that being used more widely?

Second, in respect of the fact that Ulster Bank operates in Northern Ireland, what is Mr. Brown's experience there of the bankruptcy regime, which is a one year bankruptcy term, and how that impacts on its mortgage book? Where it is invoked, what has been the outcome for the family home in those situations?

Third, Mr. Brown made reference to the factors that impact on the bank's variable rate including capital levies, taxes, compliance costs, credit losses, operational costs, etc.

I presume these factors also impact on the bank's credit rating. Does Ulster Bank have two separate credit ratings for its operations in the Republic of Ireland and Northern Ireland? Are the two credit ratings different, and if not, does it suggest that those who operate the ratings see no significant difference in the operating risks of loan books in the two jurisdictions? How active is the switching market in Northern Ireland? How many competitors does Ulster Bank have in Northern Ireland compared with here, and is the relative lack of competition here a factor that enables the bank to charge a higher interest rate here? Does Ulster Bank have a profile of the 2,000 non-engagers in terms of age, employment and loan-to-value ratio? I appreciate that if a person does not open his or her post, the bank has a difficulty. On the basis of other products that exist regarding switching, loan-to-value ratios and appreciating property prices, could the non-engagers become compliant mortgage holders?