Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

When a person applies for a mortgage loan to buy a home, he or she will generally be required to take out mortgage protection insurance. In most cases, a lender is legally required under section 126 of the Consumer Credit Act 1995 to make sure that a mortgage applicant has mortgage protection insurance in place before granting a mortgage loan. This is an important statutory provision designed to protect the borrower's dependants and their home should the borrower die before the mortgage has been repaid. However, the Act also recognises that in certain cases such protection is not necessary or would be inappropriate and it provides for a number of limited exemptions to this statutory obligation, such as where the borrower belongs to a class of persons and other exemptions.

I do not play a role in the mortgage and insurance issues raised by the Deputy, which relate to commercial decisions made by banks. However, I am aware that this is an issue. It has been raised by a number of constituents and other Deputies, as well as by the Deputy, in recent days and weeks. While I cannot instruct the banks with regard to this, I will engage with them on it. In what is a difficult time for so many, these decisions can become even harder. I cannot instruct the banks with regard to this but I will engage with them on it and see if I can bring any further clarity to the issue for the Deputy.

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