Pádraig O'Sullivan (Cork North Central, Fianna Fail)
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252. To ask the Minister for Finance if he will review matters in correspondence (details supplied); and if he will make a statement on the matter. [3241/23]

Michael McGrath (Cork South Central, Fianna Fail)
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The interest rate charged by a Central Bank regulated entity is, subject to the terms of the particular contract, a commercial matter for the creditor and, as you know, I cannot instruct mortgage creditors on the interest rate they charge or the type of mortgage products they offer to their customers.

However, the Central Bank has put in place a range of measures in order to protect consumers who take out or have a mortgage. This 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.

For example, through protections at the initial marketing/advertising stage, in assessing the affordability and suitability of the mortgage and at a time when borrowers may find themselves in financial difficulties.

This consumer protection framework includes 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) and all regulated entities, including retail credit firms and credit servicing firms, are required to comply with the provisions of these codes in their dealings with consumers.

The framework includes increased protections for variable rate mortgage holders introduced by the Central Bank in February 2017. The enhanced measures, which are provided for in an Addendum to the Consumer Protection Code 2012 require lenders to explain to borrowers how their variable interest rates have been set, including in the event of an increase.

The measures also improve the level of information required to be provided to borrowers on variable rates annually about other mortgage products available from their lender which could provide savings for the borrower. The lender must also signpost the borrower to the CCPC’s mortgage switching tool.

In addition the Bank has informed me that it has engaged with lenders to ensure the operational capacity is in place to facilitate people to switch at a system wide level.

The CCMA provides specific protections for borrowers in arrears or facing a prospect of arrears on a loan secured on a primary residence. In particular, a regulated entity must pro-actively encourage borrowers to engage with it about financial difficulties which may prevent the borrower from meeting his/her mortgage repayments.

Also, where a borrower is experiencing repayment difficulty, a regulated entity must explore all of the options for alternative repayment arrangements (ARAs) offered by the entity to determine if a more suitable and sustainable repayment option is available based on the borrower’s individual circumstances. If a borrower is not satisfied with the options proposed, or if the regulated entity declines to offer an ARA, an appeals mechanism is provided for in the CCMA.

In addition, there are a number of public initiatives to assist people who are in mortgage or other debt difficulty. For example, the Abhaile service which is made up of the Insolvency Service of Ireland (ISI), the Legal Aid Board, the Money Advice and Budgeting Service (MABS) and the Citizens Information Board provides free financial advice, and where appropriate also, legal advice to people experiencing difficulty with their mortgage.

Further information on this service can be found at on the MABS website and their number is 0818 072000. I would encourage any person who is experiencing difficulty with their debt situation to contact MABS for advice and assistance.