Violet-Anne Wynne (Clare, Independent)
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223. To ask the Minister for Finance his views on what work he is undertaking with respect to banks and financial institutions accepting disability allowance and carers allowance as income when an individual applies for a mortgage; and if he will make a statement on the matter. [10442/24]

Michael McGrath (Cork South Central, Fianna Fail)
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The Central Bank of Ireland, as part of its mandate to preserve and protect financial stability, has statutory responsibility for the regulation of mortgage lending by banks and other regulated mortgage lending institutions operating in Ireland. In line with this mandate, there are certain regulatory requirements lenders have to meet when providing mortgage credit to consumers. For example, lenders have to comply with the Bank's macro-prudential measures for residential mortgage lending which, with a certain level of flexibility, apply certain loan-to-value (LTV) and loan-to-income (LTI) requirements in relation to residential mortgage lending. In addition, the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 require lenders to assess the creditworthiness of the borrower and provide that mortgage credit should only be made available where the result of the 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. Also, the Central Bank’s Consumer Protection Code 2012 requires that lenders gather information on the borrower’s personal circumstances and financial situation.

Within this general regulatory framework, it is then a commercial matter for individual lenders to decide whether or not to provide a loan in any particular case, or how much credit to provide in any particular case, having regard to their own lending policies and underwriting criteria. Those are commercial matters for individual lenders and as Minister I have no function or role in such decision-making matters by credit institutions. However, there is nothing in the regulatory framework which requires banks or other lenders to make a distinction between different types of income when considering an application for a mortgage.

The Central Bank expects lenders to be transparent and fair in all their dealings with borrowers and that borrowers are protected through fair assessment of the affordability and suitability of the mortgage. Where a lender refuses a mortgage application, the lender must inform the consumer without delay of the refusal and the Consumer Protection Code requires that the lender must clearly outline to the consumer the reasons why the credit was not approved, and provide these reasons in writing if requested. If a mortgage applicant is not satisfied with how a regulated firm is dealing with them in relation to an application for mortgage 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, they 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.

Michael McGrath (Cork South Central, Fianna Fail)
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The NTMA have informed me that they contacted An Post in relation to the matured products as included in the details supplied and understand that An Post has requested additional information from the customer, which at the time of writing remains outstanding.