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

Just to be clear, I also fully respect the independence of the Central Bank but that does not take from my right as a public representative to take a view on these measures. In reality, the Department of Finance is in very close contact on a day-to-day basis with the Central Bank. I am not advocating in any sense a return to the type of lending we had in the past. I believe there should be a minimum deposit requirement and that around 10% is appropriate. I also believe that mortgage applications should be very stringently stress tested and the capacity to repay the loan should be the primary determinant of whether a mortgage is sanctioned. That said, the Minister cannot take away from the fact that these measures will have a very significant social impact. Home ownership levels are certainly going to fall. These rules have put home ownership beyond the reach of many, despite their ability to repay a mortgage. People who are paying enormous rents at the moment cannot save and simply will not be able to get a mortgage. Equally, we have thousands of families now trapped in apartments and other unsuitable accommodation from which they need to move. They will require a full 20% deposit in respect of the purchase price of any new home.

Reading between the lines, it seems the Minister is not very happy with these rules but he has not done anything about it as far as I can see. Is he satisfied with these rules being in place and with the fact the Central Bank says it is actively monitoring their effect? Does he intend to go further and does he have the power to seek a formal review of these rules and their impact?

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