Clare Daly (Dublin North, Socialist Party)
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169. To ask the Minister for Finance if he will ensure in regard to Irish Bank Resolution Corporation mortgages that any purchaser only changes mortgage interest rates in line with changes in the ECB rate to prevent a potential purchaser from hiking up rates to unsustainable levels. [50356/13]

Michael Noonan (Limerick City, Fine Gael)
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I have been advised by the Special Liquidators that the contractual terms and conditions of mortgage customers have not changed as a result of the appointment of the Special Liquidators nor will they change on the sale to a third party. As the sale process for this portfolio has yet to be completed it is not possible to speculate on what the potential intentions of the ultimate purchasers of the loans may be but any party that acquires the residential mortgage book of IBRC (in Special Liquidation) will be obliged to comply with the contractual terms and conditions of those loans.

Clare Daly (Dublin North, Socialist Party)
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170. To ask the Minister for Finance if he will encourage AIB, PTSB and other State owned banks to be flexible in offering remortgage deals to Irish Bank Resolution Corporation mortgage holders. [50357/13]

Michael Noonan (Limerick City, Fine Gael)
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I understand that AIB and Permanent TSB are already engaging with Irish Bank Resolution Corporation mortgage holders who wish to move their mortgages. This is a welcome development and I would encourage both institutions to continue doing so where appropriate. AIB has informed me that it continues to engage with individual IBRC customers who wish to discuss moving their existing mortgage. Each case is assessed on its merits with primary focus on financial analysis and proving sustainable repayment capacity and is subject to AIB’s existing lending capacity and policy.

Permanent TSB has informed me that it is actively seeking applications from creditworthy borrowers across all segments of the market including customers who wish to switch their mortgages. Permanent TSB continues to consider applications for re-mortgage facilities from IBRC mortgage holders who meet Permanent TSB’s normal lending criteria. Permanent TSB has informed me that it offers a rate of 3.95% to customers with a loan-to-value ratio of less than 50% which may be of interest to customers of IBRC with a low loan-to-value ratio.