Louise O'Reilly (Dublin Fingal, Sinn Fein)
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81. To ask the Minister for Finance if he is aware of the pillar banks refusing outright to provide mortgages to customers who wish to purchase their home from a local authority under the tenant purchase scheme; and if he will make a statement on the matter. [28650/24]

Jack Chambers (Dublin West, Fianna Fail)
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The Central Bank of Ireland is responsible for regulating and supervising the providers of mortgage and other credit by regulated financial services providers to consumers. The Central Bank sets out macro-prudential and consumer protection requirements which have the objective of protecting overall financial stability and the interests of consumers.

In line with this mandate, the Central Bank has specified certain loan to value and loan to income thresholds for mortgage lending.

In addition, before providing a mortgage, regulated lenders are required to undertake thorough creditworthiness assessments to ensure a borrower will be able to repay the mortgage. This assessment must take into account the individual circumstances of the borrower, including personal circumstances and financial situation.

The regulatory framework provides that a regulated mortgage lender shall only make credit available to the 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.

Where a lender refuses a mortgage application, the lender must inform the consumer without delay of the refusal. In addition, the lender must clearly outline to the consumer the reasons why the credit was not approved, and provide these reasons on paper if requested.

If a mortgage applicant is not satisfied with how a regulated firm is dealing with them, 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 financial services provider, the person can then submit a complaint to the Financial Services and Pensions Ombudsman.

Within the parameters of this regulatory framework, the decision to grant or refuse an individual application for mortgage credit (or to decide the amount of credit to provide in response to a particular application) is a business decision to be made by the regulated entity and, as the Minister for Finance, I have no function or role in such matters.

The Deputy may wish to note that, separate from the framework in relation to provision of credit by banks and other Central Bank regulated lenders, local authorities may also provide mortgage credit to first time buyers.

These mortgages do not fall within the Central Bank mortgage lending control framework as outlined above. Instead, the eligibility requirements for such credit is a matter for the Department of Housing, Local Government and Heritage.

Further information on these mortgages, including information on how applicants may apply for such a mortgage, can be obtained from the Local Authority Home Loan website or from the local authority in the area where a prospective buyer is looking to purchase a home.