Cian O'Callaghan (Dublin Bay North, Social Democrats)
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336. To ask the Minister for Finance if he intends to take action that will assist first time buyers who cannot secure a mortgage on a one-bed apartment due to the lower loan-to-value limit on these homes; and if he will make a statement on the matter. [15629/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Central Bank of Ireland is responsible for regulating and supervising the provision of mortgage and other credit to consumers by regulated financial services providers. In line with this mandate, the Central Bank has adopted macro prudential residential mortgage lending requirements which, with a certain level of flexibility for lenders, sets maximum loan to value (LTV) and loan to income (LTI) thresholds for mortgage lending which is secured on residential property in the State.

The LTV limit provides a buffer against the effects of house price falls, which could push borrowers into negative equity and increase the risk of default; the LTI limit, on the other hand, provides a buffer against the effects of future shocks to income or employment. Under these macro prudential lending regulations, the LTV limit for both first time buyers and second and subsequent buyers is 90% of the value of the secured property.

This mortgage lending macro prudential framework, including the LTV part, does not differentiate in any way between either the geographic location or type of residential property.

Within the overall framework of these macroprudential rules and other relevant regulatory requirements, it is then a matter for individual lenders to determine their own lending policies and to make their own individual lending decisions, including in relation to the maximum amount of credit they may wish to provide in relation to a particular type of residential property.

These are commercial matters for lenders and, as the Minister for Finance, I have no function or role in such matters. Nevertheless, it can also be noted that the Consumer Protection Code requires lenders, where a formal application for credit is turned down, to clearly outline to the personal consumer the reasons why the credit was refused and to provide those reasons on paper if requested by the consumer.

If a consumer is not satisfied with the way a regulated firm is dealing with him/her or it is not complying with the regulatory requirements, including the way that a mortgage application has been handled, the consumer should make a complaint directly to the regulated firm. If the consumer is still not satisfied with the response from the regulated firm, he/she can refer the complaint to the statutory Financial Services and Pensions Ombudsman (FSPO).