Seán Fleming (Laois-Offaly, Fianna Fail)

I appreciate the opportunity to speak on this motion and I thank Deputy Ciarán Lynch for tabling it this evening. There is a common concern on all sides of the House about the concerns of home owners who are in financial difficulties.

It is important to state at the outset that there are people in that category who have genuine concerns. Everyone has recognised that the most important thing is to approach the financial institution as early as possible to discuss issues rather than to let problems accumulate. Many people still in good employment are able to meet their monthly mortgage repayments. Ireland has historically been good in this area because Irish people want to own their homes. We should not create unnecessary fear in the population, especially in those who do not have a problem, by dwelling too much on an issue that is serious but does not affect the majority of householders.

Judges dealing with some financial institutions in court have been astounded at the reckless behaviour of the banks issuing the loans. Those cases did not proceed because the banks got the message that they should go home and negotiate rather than march into court to seek a repossession. That is one reason for the banks to be happy to negotiate voluntary agreements because they will get no sympathy from judges who see the level of mortgages they granted to some who clearly could not have paid them. They were unsustainable from day one. Banks are still giving 100% mortgages. I would have been happy in the past if the mortgages were only for 100% but the banks were giving 130% mortgages which they justified on the basis that the property market would continue to increase by 20% or 30% over the following two years and the mortgages would then be worth 100%.

Each of us must have met people in our clinics who not only have 100% mortgages but the cost of whose weddings, honeymoons, two car loans and credit card bills were all lumped into the mortgage.

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