Catherine Murphy (Kildare North, Social Democrats)
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256. To ask the Minister for Finance if he has engaged with banks and or the Central Bank in respect of the timeframes that the banks have set for borrowers to draw down mortgages once approval has been sanctioned; if his attention has been drawn to the issue for borrowers facing interest rate increases on loans that cannot be drawn down due to building works on properties not being completed in time in order to satisfy a bank to release borrowings. [53154/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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Decisions in relation to mortgage lending, including the length of time for which a mortgage offer is valid and the conditions that have to be met for the drawdown of a mortgage loan, are commercial matters for the individual lender.

These decisions are subject to compliance with the legal and regulatory framework in relation to the provision of mortgages.

Provision 4.29 the of the Consumer Protection Code provides that, where a Central Bank regulated entity offers a mortgage to a personal consumer, the regulated entity must include certain information in the offer document including:-

- the interest rate that applies to the mortgage at the date of offer;

- where there is a possibility that the interest rate set out in the offer document may not be the interest rate applicable when the mortgage is drawn down, that must be clearly highlighted (and the offer document must also outline the circumstances that would result in such a change to the interest rate);

- the length of time for which the mortgage offer is valid, assuming that all details provided by the personal consumer are valid and do not change.

More generally, the Central Bank has stated that it expects that all regulated entity’s take a consumer-focused approach in respect of any decision that affects their customers (existing and new) and communicate clearly, effectively and in a timely manner with all customers.