Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

The targets that have been set are targets for the number of solutions proposed by the banks by June, September and December, respectively. It is critical that the Central Bank sets binding targets for the conclusion of agreements with borrowers. We must move into that space because the banks will be allowed to propose sustainable solutions involving interest only repayments or having someone declared insolvent. Both these options are listed as sustainable solutions. We need targets for concluding agreements.

Much of what we have seen so far is temporary forbearance. Those of us who are trying to help people secure longer term forbearance, for example, split mortgage or mortgage to rent facilities, have found time and again that the banks are telling individual borrowers they do not qualify for a split mortgage. I had a case recently where a couple with a number of children living in a four bedroom house were told four bedroom houses do not qualify for mortgage to rent facilities. Who is making the rules? People are not being given proper reasons for being deemed ineligible for a split mortgage. Has the Central Bank issued detailed guidance to the banks on this matter or are the banks making up their own rules on how split mortgages should work? Some banks are charging full interest, while others do not charge any interest on split mortgages. There is also no consistency in the qualifying criteria for mortgage to rent facilities.

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