Michael McGrath (Cork South Central, Fianna Fail)
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136. To ask the Minister for Finance if the banks are required to regard an application for a mortgage from an Irish couple living in the United Kingdom, through which the family intend to buy a family home here for themselves to live in, as a buy-to-let mortgage with the associated deposit rules; if he recognises the immense difficulty this presents for Irish couples working in the United Kingdom who wish to return and live here; and if he will make a statement on the matter. [5472/16]

Michael Noonan (Limerick City, Fine Gael)
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Firstly, let me make clear that the banks in Ireland are independent institutions and I, as Minister for Finance, have no role in operational matters in the banks including decisions in relation to the granting of credit, notwithstanding the fact that the State is a shareholder in some of these institutions.   

However, I have consulted with the Central Bank on the relevant Regulations, the Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Housing Loan Requirements) Regulations 2015.

According to the Regulations, different percentages apply depending on whether or not the property is intended to be used for principal home purposes. "Principal home purposes" means a residential property which a borrower uses or intends to use for the purpose of his or her principal home. The Regulations make no distinction as to the current country of residence of the borrower and do not require the lender to apply a lower threshold to mortgage applications by people currently based in another country.

The Regulations are not designed as a substitute for lenders' responsibilities to assess affordability and lend prudently on a case-by-case basis and these decisions are a matter for the banks themselves.

Section 57 BX of the Central Bank Act 1942 , as amended, provides that an eligible consumer may complain to the Financial Services Ombudsman about "a failure by the financial service provider to provide a particular financial service that has been requested." If the couple have made a formal complaint to the financial institution in question and are not satisfied with the reply received, I would suggest that they make a complaint to the Financial Services Ombudsman.