Michael McGrath (Cork South Central, Fianna Fail)
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75. To ask the Minister for Finance the interest rate banks (details supplied) apply to the warehouse portion of a split mortgage; and if he will make a statement on the matter. [40299/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Central Bank is aware of various information about the operations of regulated firms as their supervisor. The Central Bank is subject to strict confidentiality requirements under section 33AK of the Central Bank Act 1942, which prevent the disclosure of firm-specific information gathered in that role.

My Department sought information from the Banks in which the State has an interest, and received the following responses: 

Permanent TSB's current policy in respect of interest rates on the warehoused portion of Split Mortgages is as follows:

- The Bank applies a rate of 0% on the warehoused portion of debt secured by way of a Primary Residence, and under the protection of the Code of Conduct on Mortgage Arrears 2013.

- The Bank applies a reduced rate of interest on the warehoused portion of debt secured by way of a Buy To Let property. The reduced rate depends on the level of rental cash flow and principal repayment. It is typically 0.5%, 1.00% or 1.5%.  Interest rates outside of these bands may apply in limited circumstances, but once again at a reduced level dependent on rental cash flow and principal repayment.

AIB have confirmed that the warehoused portion of the split mortgage is currently at a rate of 0% within AIB and EBS.

Bank of Ireland state that their Owner Occupier borrowers may choose to stay on their existing interest rate or choose one of the Bank's fixed rate products.