Réada Cronin (Kildare North, Sinn Fein)
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186. To ask the Minister for Finance if he will request banks to extend the lifetime of mortgage approval for borrowers given the dearth of affordable properties to buy and the increase in house prices far above those advertised for even modest properties; and if he will make a statement on the matter. [41906/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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There is no specific regulatory provision which specifically relates to the duration period of a mortgage approval (either an Approval in Principle or a mortgage offer). However, lenders should make the duration of any Approval in Principle clear to a consumer, in line with the requirement of the Consumer Protection Code 2012 to provide clear information to a consumer and to bring key information to the attention of the consumer.  When a lender offers a mortgage to a consumer, the Code requires that the lender must include the length of time for which the mortgage offer is valid in the offer document. However, it remains a business matter for individual lenders to set the duration period of a mortgage approval (and if necessary to decide whether or not to extend the period of mortgage approval) and it would not be appropriate for me to become involved in the commercial and business making decisions of lenders.  Ultimately of course there is also an obligation on lenders to provide mortgage credit to consumers only where the results of a creditworthiness assessment indicates that the consumer’s obligations resulting from the credit agreement are likely to be met in the manner required under that agreement and lenders will need to satisfy themselves that they can comply with this obligation.      

Nevertheless, it should be noted that the Central Bank has indicated that it expects all regulated firms to take a consumer-focused approach and to act in their customers’ best interests at all times, including during the COVID-19 pandemic.  If a mortgage applicant is not satisfied with how a regulated firm is dealing with them in relation to an application for credit or the drawn down of credit, or they believe that the regulated firm is not following the requirements of the Central Bank’s codes and regulations or other financial services law, the mortgage applicant should make a complaint directly to the regulated firm. If the mortgage applicant is still not satisfied with the response from the regulated firm, he or she can refer the complaint to the independent Financial Services and Pensions Ombudsman.