Michael Healy-Rae (Kerry, Independent)
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316. To ask the Minister for Finance when a mortgage customer (details supplied) will be given further information on what will happen in 2023 regarding their mortgages; and if he will make a statement on the matter. [63807/22]

Michael McGrath (Cork South Central, Fianna Fail)
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In 2021, Ulster Bank announced its intentions to commence a phased withdrawal from the Irish market. As part of this process, Ulster Bank plans to transfer its loans, including mortgages, to other providers.

While it is regrettable that Ulster Bank has decided to exit the market, as Minister for Finance, I do not have a role in the operations of any bank operating within the State. My priority now is that the withdrawal takes place in an orderly manner and the importance of this is emphasised in all engagements with Ulster Bank.

The consumer protection framework seeks to ensure that lenders are transparent and fair in all their dealings with borrowers and that borrowers are protected from the beginning to the end of the mortgage life cycle.

Where the consumer’s mortgage is being transferred to another provider, the consumer will receive at least 2 months’ notice, in line with provision 3.11 of the Consumer Protection Code 2012. 

When a mortgage or other credit agreement is sold or assigned the terms and conditions of the agreement, including those terms in relation to the interest rate, remain in place and the entity which acquires the agreement cannot be in a better position than the entity which sold the agreement and cannot unilaterally change the terms of the agreement.

In addition, a loan that is sold or transferred to another regulated entity, the protections that were available to borrowers prior to the transaction continue to be in place with the new owner. It is worth noting that under the Consumer Protection (Regulation of Credit Servicing Firms) Act 2018 if a loan is transferred or sold, the holder of the legal title to the credit must be regulated and must act in accordance with Irish financial services law that applies to ‘regulated financial service providers’. 

This ensures that consumers whose loans are sold or transferred, maintain the same regulatory protections that they had, including under the various Central Bank statutory Codes of Conduct, such as the Consumer Protection Code 2012 and the Code of Conduct on Mortgage Arrears 2013 (CCMA). 

It should also be noted that where a mortgage is fully performing, customers are entitled to switch their mortgage to another provider at any stage, subject to the new lender’s lending criteria and terms and conditions.

The Central Bank and I expect all regulated entities to 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.

Further information on the withdrawal and mortgages are available on Ulster Bank’s website.