Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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197. To ask the Minister for Finance if an issue affecting first time buyers (details supplied) will be examined; and if he will make a statement on the matter. [41277/24]

Jack Chambers (Dublin West, Fianna Fail)
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Central Bank regulated banks and other mortgage lenders are independent commercial entities and it is a matter for those entities to determine its own lending policies and to make its own individual lending decisions. This includes matters in relation to the type of security acceptable by lenders for secured lending purposes, including the nature of any required structural insurance or structural warranty of a property that will act as security for a loan.

As Minister for Finance, I have no role in relation to decisions on such business matters by any bank or other mortgage lender operating in the State.

However, in relation to the general regulatory framework governing mortgage lending, where a lender refuses a mortgage application, the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 provides that the lender must inform the consumer without delay of the refusal. In addition, to the Consumer Protection Code 2012 further provides 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 consumer is not happy with the way a regulated entity is dealing with him/her in relation to a mortgage application or if a consumer considers that it is not following the requirements of relevant financial services legislation, including provisions relating to circumstances where a lender requires the borrower to hold a policy of insurance connected to a mortgaged property, and the Central Bank’s codes and regulations, the consumer should make a complaint directly to the regulated firm in the first instance.

If the consumer is still not satisfied with the response from the regulated firm, he/she can refer the complaint to the Financial Services and Pensions Ombudsman (FSPO).

This independent office was put in place by the Oireachtas to adjudicate on disputes between consumers and financial service providers. The FSPO can be contacted on 01 567 7000 or at info@fspo.ie.