Eoin Ó Broin (Dublin Mid West, Sinn Fein)
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148. To ask the Minister for Finance if he plans to increase the level of regulation of lifetime loan products provided by companies (details supplied) to prevent them charging punitive interests rates which results in borrowers who fall into arrears risking losing their homes. [27648/24]

Jack Chambers (Dublin West, Fianna Fail)
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The Central Bank advises that the company referred to by the Deputy is authorised by it as a retail credit firm (RCF) and that RCFs are required to comply with all the relevant requirements of financial services legislation, including the regulatory requirements set out in the Central Bank's existing codes of conduct and regulations. These include:

• the Consumer Protection Code 2012,
• the Code of Conduct for Mortgage Arrears 2013,
• the Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Lending to Small and Small and Medium-Sized Enterprises) Regulations 2015 (SME Regulations),
• the Fitness and Probity Regime,
• the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) Minimum Competency Regulations 2017, and
• the Minimum Competency Code 2017.

• the circumstances in which the loan will have to be repaid;
• details of the interest rate that will be charged;
• an explanation of the impact of the rolling up of the interest over the duration of the loan;
• an indication of the amount required to repay the loan at maturity;
• the effect on any existing mortgage;
• an indication of the likely early redemption costs which would be incurred if the loan was redeemed on the third and fifth anniversary of the loan and at five yearly intervals thereafter.

In addition, RCFs must comply with the Authorisation Requirements and Standards for RCFs. These Standards require that RCFs must be able to demonstrate that they are in a position to conduct their affairs in a manner that ensures the best interests of their customers are protected.

However, neither the Central Bank nor I as Minister for Finance have a statutory role in approving the interest rates that mortgage lenders charge on their loans. Decisions in relation to mortgage lending are commercial decisions for lenders themselves. There are many factors affecting the decisions of lenders when setting their lending rates such as the costs of offering the loan, including funding costs.

However, the Central Bank has advised that it expects that all regulated entities 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.