Michael McGrath (Cork South Central, Fianna Fail)
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107. To ask the Minister for Finance the number of life loans in respect of residential properties in issuance here; the total amount owed on these loans, if such loans are still being marketed by banks, if he is satisfied that consumers are being made fully aware of the risk associated with a life loan; and if he will make a statement on the matter. [17790/16]

Michael Noonan (Limerick City, Fine Gael)
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I have been advised by the Central Bank that Lifetime Loans are regarded as a niche product and they have not been provided in the Irish market for a number of years. Loans of approximately €640 million to around 6,500 customers are currently outstanding.

The Consumer Protection Code 2006 and the Consumer Protection Code 2012 contain a number of provisions regarding the provision of information to consumers in respect of these products.

The Consumer Protection Code 2006 contains requirements relating to:

- advising the consumer of the consequences of the lifetime mortgage including details of total costs involved,

- making consumers aware of the importance of seeking independent legal advice

- inclusion of a warning on any information document, application form etc. that "Purchasing this product may negatively impact on your ability to fund future needs"

The Consumer Protection Code 2012 contains more comprehensive provisions, including informing the customer of:

- the consequences of purchasing a lifetime loan, the circumstances in which the loan will have to be repaid,

- details of the interest rate that will be charged,

- an explanation of the impact of the rolling up of the interest over the duration of the loan,

- an indication of the amount required to repay the loan at maturity, the effect on the existing mortgage, if any; and

- an indication of the likely early redemption costs which would be incurred if the loan was redeemed on the third and fifth anniversary of the loan and at five yearly intervals thereafter. 

The Consumer Protection Code 2012 also requires, at least annually, the provision of a statement of account including the opening balance, all transactions, all interest charged, all charges, the outstanding balance and details of the interest rate(s) applied to the account during the period covered by the statement.