Richard Bruton (Dublin North Central, Fine Gael)
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Question 32: To ask the Minister for Finance if he has examined the possibility of introducing measures to promote greater availability of long-term fixed interest mortgages which would reduce the vulnerability of the economy to short-term interest rate movements; and if he will make a statement on the matter. [12369/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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It would not be appropriate for me in my role as Minister for Finance to seek to promote one type of mortgage product ahead of another. As the Deputy will be aware, there is a high degree of competition in the Irish mortgage credit market, providing a wide choice of competitively priced mortgage products to potential borrowers from several mortgage lenders. In this regard, I understand that long-term fixed interest rate mortgages are available from mortgage lenders to any customer who wishes to avail of them.

The decision on the choice of mortgage product ultimately rests with the consumer, drawing, for example, on the information and advice supplied by the Financial Regulator and the lending institution concerned. The mortgage products offered by institutions to borrowers are based on many factors and will reflect the assessment of the attractiveness of the product to their customers. The preference of borrowers is also influenced by a range of factors, the assessment of which will depend on the personal circumstances and risk assessment of each individual borrower.

I am satisfied that the information being made available by the Financial Regulator, together with the statutory information and warnings in the case of mortgages, serve as an adequate basis for consumers to make a decision about the types of mortgage that best suits them, given all the factors which must be considered, including the relative merits of fixed and variable rate mortgages. For example, the Financial Regulator has published a guide called Mortgages made Easy, which is available on its website or for callers to its consumer information office. This booklet describes the different types of mortgages available, including fixed rate mortgages, and outlines the advantages and disadvantages associated with each type of mortgage.

In light of such factors as the continued strong performance of the Irish economy with strong employment and income growth, I would not see the recent increases in interest rates as having a significant impact on the Irish economy. At the same time, the possibility that interest rates may rise over the medium term, with obvious implications for the burden of repayments, should be kept firmly in mind by borrowers. I fully support the vigilance of the Central Bank and the Financial Regulator in consistently reiterating the importance of borrowers acting sensibly and the lending institutions acting prudently, given the possibility that interest rates will rise further in the medium term.