Jerry Buttimer (Cork South-Central, Fine Gael)

The Deputy is right to raise the matter. It is an issue vexing many of our neighbours and friends. The Government is acutely aware of the impact of the rising interest rate environment and the strain it has caused for some borrowers, and has responded with various initiatives to assist those affected. Following engagement with the then Minister for Finance in 2023, the mortgage industry put in place several measures to assist their customers experiencing difficulties to provide enhanced clarity on eligibility criteria for switching mortgages.

I emphasise that all regulated entities, including banks, other regulated mortgage lenders and loan owners and services, are required as a matter of law to follow the statutory Central Bank code of conduct, including the code of conduct on mortgage arrears and the consumer protection code. These codes are not voluntary and there can be no question of regulated loan owners not following them. The failure to do so can result in the Central Bank of Ireland using its range of powers to ensure adherence to codes, including its administrative sanctions, procedures or legal actions where appropriate.

In addition to the protections available to consumers under the financial legislation and regulatory framework, a consumer also has recourse to the Financial Services and Pensions Ombudsman, FSPO. If consumers are not satisfied with how a regulated firm is dealing with them in relation to the handling of their mortgage or believe a regulated firm is not following the requirements of the Central Bank codes and regulations under financial services law, they should make a complaint directly to the regulated firm. If consumers are still not satisfied with the response, then there is an option to go to the independent financial services office provided for in law to adjudicate on complaints consumers have with regulated financial services providers.

Again, recent Central Bank data indicates that the average interest rate on outstanding mortgages held by bank and non-bank regulated entities has declined over recent years. Deputy McGrath is right to raise this matter. We cannot be complacent. We have an obligation to ensure we advocate on behalf of and work for our constituents and people we know well. The decline in this regard is a welcome one and, from a general perspective, the ECB is reducing official interest rates and the Government expects all mortgage creditors to keep their lending rates under review. Where mortgage rates had in the past increased in line with ECB increases, they should now in the new interest rate environment also appropriately adjust downwards. The Central Bank will continue to liaise with regulated entities on this matter.

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