Ruairi Quinn (Dublin South East, Labour)
Link to this: Individually | In context

Question 99: To ask the Minister for Finance if his attention has been drawn to the fact that consumers in stable employment and with a reliable credit history are having difficulties in accessing mortgage finance; his proposals to improve this situation; and if he will make a statement on the matter. [27971/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

While I cannot comment on individual cases, I would however point out that in response to the issue of access to mortgage finance, as part of the terms of the recapitalisation of AIB and Bank of Ireland, the banks agreed to provide an additional 30% capacity for lending to first time buyers in 2009. The banks have also committed to actively promote mortgage lending at competitive rates, with increased transparency on the criteria to be met.

In general, the decision on whether an institution operating in Ireland approves a mortgage application from individuals is a commercial decision for the institution concerned. The Deputy will appreciate that a balance must be achieved by Government between influencing private banks through the bank guarantee scheme and other financial support incentives while at the same time being seen to have a hands-off approach to the day to day running of these institutions which must operate on a strictly commercial basis.