Mr. Se?n McCabe:

I thank the Chairman and committee members for inviting me here today to participate in this meeting. Like my fellow volunteers within the focus groups, I am a defective block homeowner. My wife and I moved into our home in 2016 and, after core testing in July 2021 under supervision with the appointed engineer, we were advised that our home should be demolished due to high levels of deleterious materials. We completed stage 1 of the scheme and we are now due to enter stage 2 of the scheme as it stands.

I have a financial services background and I am based in the North where I specialise in mortgages and insurances, but I must add that I am here in a personal capacity. I was invited onto the focus group in February past and I accepted as I could no longer sit back and watch my family, neighbours and community suffer due to the failings of the scheme. This is the reason I am here.

Today I will focus on our group's meetings and work to date, in particular our meetings with the main banks, Banking and Payments Federation Ireland, BPFI, and the Minister for Finance, and some of the key areas that were discussed. With the meetings, we engaged and met with all of our local Deputies and we requested their help. As a group, we have met individually with AIB, EBS and Bank of Ireland, and we await a meeting with Permanent TSB on a local level. At our own request, we engaged in a meeting hosted by Brian Hayes with Banking and Payments Federation Ireland on 29 May, at which the following banks attended: AIB, EBS, Bank of Ireland, and Permanent TSB, along with the presence of the Irish Banking Culture Board.

We met most recently with the Minister for Finance, Deputy Michael McGrath, on 21 June at Government Buildings. The key areas we discussed and the areas of concern that we have are the emergency need for an interim finance facility such as an overdraft, a 0% bridging type facility, and the need for interim funding up to the capped level of the scheme. Beyond the capped threshold there is a need for an equity release type facility that is fair for vulnerable homeowners, along with the need for each lender to develop a tailored and bespoke product that allows each homeowner to cover the shortfall of the scheme. In simple terms, this allows the homeowner to pay the tradesmen on time to finish the property. The banks we have met have acknowledged the need for this and the Minister for Finance, Deputy McGrath, has agreed that this is indeed a reasonable request. We need these products implemented by the individual banks with the help of the Government. The banks must understand that these products will be State guaranteed, due to the scheme, and as such the loan should be at 0% interest. We have been very clear when engaging with the banks that they should not profit from the misfortune of defective block homeowners. These products are within the remit and capability of our lenders, and lenders must be reminded that they have a duty of care to look after their customers.

Another area of concern relates to our mortgage terms and conditions. The mortgage terms and conditions state that damage due to the property or demolition of our property is regarded as a demand event and as such, mortgage holders are in breach of their terms and conditions. We need to address these issues and get solid assurances.

With regard to the new scheme, we are hearing soundings about engineers being appointed by the Department of Housing, Local Government and Heritage. We need assurances around the impartiality of this system and the certification of proposed works. Will this address the damage caused in our mortgages?

Another key area of concern is partial remediation on the homes still being party to deleterious materials. We have concerns around how these properties will achieve market value if foundations and partially remediated walls are still left in place. We have concerns around the future impact on the remortgage capacity for the homeowner. For example, if full market value is not restored, this could disadvantage the homeowner on the loan-to-value ratio and indeed their interest rates. Further to this, if our homes are not restored to full market value, what is the potential ongoing effect for the economy and housing stock within Donegal and further afield?

The Government has a track record of implementing tailored financial products in tandem with financial institutions, for example, initiatives such as fresh start, local authority home loans, Government-backed Covid business loans, and various Strategic Banking Corporation of Ireland facilities. The Minister touched on this at our meeting. Again, these are areas that need to be explored and should be discussed as a matter of urgency.

We have a small number of banking institutions in this country that lend the vast majority of home loans and mortgages. We do not have a system like other countries where there are hundreds of lenders and a very multilayered banking world. Surely the banks along with the Government can sit down with us in moving forward, listen to our concerns and engage with us on this. I appeal to the members of the committee today to take this message home with them and do everything they can as elected representatives to make that happen. Go raibh maith agaibh.