Written answers
Tuesday, 27 May 2014
Department of Finance
IBRC Mortgage Loan Book
Pearse Doherty (Donegal South West, Sinn Fein)
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35. To ask the Minister for Finance if any assurances have been given by the funds buying the loan books at Irish Bank Resolution Corporation that they will respect the terms of the contracts in place, including the interest rates; and, if so, for what period. [23020/14]
Michael Noonan (Limerick City, Fine Gael)
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I have been advised by the Special Liquidators that the sale of a residential mortgage does not change the terms and conditions of the loan agreement in any way. Irrespective of who acquires the loan(s) they will be required to honour the legal terms and conditions of the existing loan agreement(s), including previous restructuring arrangements put in place as well as offers made to customers prior to the sale.Whether interest rates vary or not will be determined by the terms of the loan agreement.
Andrew Broderick
Posted on 4 Jun 2014 3:06 am (Report this comment)
Is The Minister aware that Professional Sub Prime Lenders which Loan Star and Oak Tree Capital can without conflicting information be safely described as, do not compete in the "Normal" mortgage market where competition tends to set the variable interest rates?
Furthermore is The Minister aware that it was not the practice of Irish Nationwide Building Society to offer the option of tracker mortgages to their customers therefore The Ministers actions have resulted in leaving some 13,000 homeowners at the mercy of sub prime lenders?
Would The Minister recommend any of his family or indeed his constituents to take out a mortgage with a sub prime lender?
Loanstar: http://loanstarhomelending.com/
Oaktree: http://oaktreecapital.com/