Holly Cairns (Cork South-West, Social Democrats)
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285. To ask the Minister for Finance if his Department has examined the matter of mortgages and loans being refused to disabled people and those with chronic illnesses due to being classed as 'high risk' by financial institutions; and if he has examined measures which would provide these groups greater access to loans and mortgages. [32322/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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There is a legal and regulatory macro prudential and consumer protection framework in place which governs the provision of residential mortgages to consumers by banks and other Central Bank regulated mortgage providers.

For example, in order to protect overall financial stability, the Central Bank has put in place macro-prudential measures for residential mortgage lending which apply, with a certain level of flexibility to lenders, loan-to-value (LTV) and loan-to-income (LTI) requirements in relation to residential mortgage lending to consumers.

In addition to the above mortgage lending rules, there are also certain consumer protection requirements governing the provision of mortgage credit to consumers. For example, the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 ('CMCAR') provide that a lender should only make credit available to a consumer 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. The assessment of creditworthiness must be carried out on the basis of information on the consumer’s income and expenses and other financial and economic circumstances which is necessary, sufficient and proportionate.

In addition, the Central Bank’s Consumer Protection Code 2012 imposes ‘Knowing the Consumer and Suitability’ requirements on lenders. Under these requirements, lenders are required to assess affordability of credit and the suitability of a product or service based on the individual circumstances of each borrower. The Code specifies that the affordability assessment must include consideration of the information gathered on the borrower’s personal circumstances and financial situation. Furthermore, where a lender refuses a mortgage application, the CMCAR requires that the lender must inform the consumer without delay of the refusal. In addition, the Code requires that the lender must clearly outline to the consumer the reasons why the credit was not approved, and provide these reasons on paper if requested.

Within this regulatory framework, it is then a commercial matter for individual lenders to determine their own lending policies and to make their own lending decisions. As Minister for Finance, I have no function in such matters. However, if a consumer is not satisfied with the way a regulated firm is dealing with him/her in assessing a mortgage application, 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). 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 and their website is: www.fspo.ie/.

The Deputy may wish to note that, outside of the specific legal and regulatory framework governing the provision of mortgage credit to consumers, more generally the Equal Status Acts prohibits discrimination in the provision of goods and services on nine stated grounds, one of which is disability. Therefore, any entity which is involved in the business of providing goods or services, including the provision of mortgage credit or other mortgage related services, may not discriminate, unless there is a reasonable basis on credit risk or an other appropriate ground to do so, between borrowers based on disability.

Finally as the Deputy will know the Government, through the Local Authority Home Loan scheme, offers mortgage finance to eligible borrowers who are unable to obtain mortgage finance (or sufficient mortgage finance) from private sector/Central Bank regulated mortgage lenders. Further information on this mortgage finance scheme is available at .