Kieran O'Donnell (Fine Gael)
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From personal observation, I was in practice as an accountant when endowment mortgages were very much of the time. I remember them as a product of the late 1980s to the early or mid-1990s. Endowment mortgages were sold to people on the basis that they could have it both ways. They could pay their mortgage but also receive a kickback when the endowment mortgage matured and at the end have a fund to educate their children. The initiative was high risk and most of the endowment mortgages have ended up pear shaped. I have found that this issue continually crops up and I have no doubt my colleagues have experienced the same. My main reason for raising the matter this morning is because I have tried to help individuals deal with such mortgages. Equally, people have contacted me because they ran the numbers and looked at their mortgages only to discover they have paid excessive amounts of money because they were caught for the premium and the endowment. The product was also sold on the basis that it would be tax free. It had a tiny element of a life policy that effectively made it tax free at the end.

A positive move would be to reform legislation but it would defeat that purpose if the elephant in the room that is endowment mortgages went unchecked. Mr. Deering has stated that his office liberally interprets the legislation. I have no doubt that multiple people have lodged complaints about endowment mortgages. Why was the matter never dealt with under the existing framework?