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

I am, of course, very aware of the difficulties the increase in interest rates in recent years has caused to many mortgage borrowers. From a regulatory perspective, the Central Bank has put in place a range of measures to protect consumers who have or who are taking out a mortgage. The consumer protection framework, which applies in the same way to all regulated mortgage entities such as banks, retail credit firms and credit servicing firms, seeks to ensure that lenders are transparent and fair in all their dealings with borrowers.

Specifically with regard to variable rate mortgage holders, the Central Bank's consumer protection code requires all regulated mortgage creditors to explain to borrowers how their non-tracker variable interest rates have been set and to clearly identify the factors which may result in changes to variable interest rates. In this context, the Central Bank is continuing to update its consumer protection framework, and Deputies will be aware that it launched an enhanced consumer protection code this week which, following an implementation period, will come into effect next year.

The Central Bank has also engaged intensively with regulated firms on the operation of specific aspects of the consumer protection framework to make sure there is capacity in place to: manage applications by borrowers to switch their mortgage or mortgage provider; ensure there is no discrimination against borrowers based on where they currently hold their mortgage; ensure changes in mortgage interest rates are in line with mortgage terms and conditions; and have supports available to borrowers in or facing arrears.

Also, a number of measures were introduced by industry in 2023 to support borrowers who wish and are in a position to switch their mortgage. This included the provision of an aligned industry-wide set of initial eligibility criteria to facilitate people who are switching their mortgage from a non-bank to a bank.

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