Dominic Hannigan (Meath East, Labour)
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To ask the Minister for Finance his plans to help persons in negative equity who want to move home; and if he will make a statement on the matter. [14892/13]

Michael Noonan (Limerick City, Fine Gael)
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Firstly, I must confirm to the Deputy that the lending institutions in Ireland, including those in which the State has a significant shareholding, are independent commercial entities and, as such, it is a commercial decision for each lender to decide what products they will provide including a negative equity mortgage. It is not appropriate for me, as Minister for Finance, to comment on or become involved in the detailed mortgage position of mortgage holders. However, I have been advised by the Central Bank that they have engaged with mortgage lenders in relation to negative equity mortgages to develop a mortgage product that would allow home owners to sell their existing home and transfer the negative equity portion of the original loan to the new loan. In order to ensure that proposals in relation to such mortgages are consistent with the Central Bank’s consumer protection and prudential policy objectives, the proposed criteria for any such facility need to be agreed in advance between mortgage lenders and the Central Bank.

While the provision of negative equity mortgages will facilitate people moving homes and generate transactions in the housing market, it is not expected that there will be a large take up of this product, as all sales must comply with the affordability and suitability provisions set out in the Consumer Protection Code.

Some lenders are offering this product, while others are considering making such a product available.