Paddy Burke (Fine Gael) | Oireachtas source

The banks say that. When Mr. Gerry Mallon of Ulster Bank appeared before the committee, I asked him whether his bank, when it makes a loan available to a customer, advises him or her of other costs such as insurance, mortgage protection and insurance against job loss that can be a significant annual cost on top of the mortgage and which many people do not take into account. I asked if the bank advises its customers about those charges and what may happen. Mr. Mallon replied:

Yes, as part of the credit approval process for mortgage approval we take the customers through an affordability calculation in which we will talk them through not only those elements but all the other elements of their underlying finances to understand what they can afford. A stress is put on that as well. If we assume that interest rates vary, we will calculate on the basis of that and test the customer's future affordability.

He says they do advise; Mr. Kissane says they do not.