John Lyons (Dublin North West, Labour)
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216. To ask the Minister for Finance if his Department will be making a submission to the Central Bank of Ireland regarding their proposed mortgage rules to be introduced next year; and if he has a response to situations where consumers have already been approved mortgages under existing rules but will not draw down these loans until next year. [40068/14]

Michael Noonan (Limerick City, Fine Gael)
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Under Section 49 of the Central Bank (Supervision and Enforcement) Act 2013, the Central Bank is required to consult with the Minister for Finance, and it may also consult with such other persons as it considers appropriate, before making regulations as provided for under that Act.

As the Deputy is aware, the Central Bank has now commenced a public consultation process on the proposed new macro prudential rules for mortgage lending and my Department will avail of the opportunity to participate in the process. Furthermore, any person who wishes to make a submission on this matter can do so to by 8 December next.

Consumers who have already been approved mortgages under existing rules, but will not draw down these loans until next year, may be interested to note the following points from the Central Bank consultation paper:

- If a regulated financial service provider has entered into a Mortgage Offer (Sanction in Principle) commitment before the date on which the LTV/LTI limits come into effect, the limits do not apply to that commitment. If a regulated financial service provider enters  into a Mortgage Offer (Sanction in Principle) commitment after the date on which the LTV/LTI limits come into effect, the limits do apply to that commitment should the mortgage be drawn down.

- Committed but undrawn amounts on an existing mortgage lending facility that was formally agreed via a signed letter of offer before the date on which the LTV/LTI limits come into effect will not be included in the limits.