Brendan Howlin (Wexford, Labour)
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Question 187: To ask the Minister for Finance if, in the context of his plans for the banking sector, specific effort is being made to ensure relief for persons on fixed rate mortgages who incur financial penalties if they opt to change to variable rate mortgages; and if he will make a statement on the matter. [18027/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Deputy's question refers to the redemption fee applied by mortgage providers in circumstances that a customer seeks to break a fixed rate mortgage. Mortgage lenders in Ireland generally seek to recover costs of funds when a borrower with a fixed rate mortgage agreement seeks to terminate the agreement some time before the term agreed.

On 26 March 2009, I undertook, in this House, to contact the Consumer Director of the Financial Regulator on the subject of customers who wish to switch from a fixed rate mortgage. On foot of that my Department has contacted the Financial Regulator to request confirmation that the redemption costs for switching from a fixed rate mortgage cover funding costs only and that there are no other costs included in these charges. The Financial Regulator has confirmed to my Department that it is looking into this matter and that it will revert shortly. I will advise the Deputy of the outcome of the Financial Regulator's consideration of this matter.