Jack Chambers (Dublin West, Fianna Fail)
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The Government is of the view that a competitive, well regulated market is the best way to achieve a sustainable mortgage market which will work in the best interest of the suppliers and consumers of mortgage products over the longer term.

While we have had difficulties in maintaining participants in the mortgage market in recent years, with the departure of two banks, nevertheless there have been more recent welcome developments with new entrants either entering or expressing interest in entering the market. Ultimately, more competition and more choice will best serve the interest of mortgage borrowers.

While the Irish retail banking system is somewhat concentrated by international standards, nevertheless competition is possible. It should be noted that there is now a wider range of mortgage products provided by different bank and non-bank mortgage providers from various types of green mortgages to different fixed interest rate products, including long term fixed interest rate products, and a range of various LTV mortgage products.

In relation to credit unions, the Credit Union Act 1997 sets out provisions in relation to credit union lending and provides the Central Bank with regulation-making powers in relation to lending.

In particular, the lending section of the Credit Union Act 1997 (Regulatory Requirements) Regulations 2016 (the 2016 Regulations) sets out, among other things, the types of loans that credit unions may provide - including personal loans, business loans, community loans, house loans and loans to other credit unions - and concentration limits for certain types of lending. The 2016 Regulations also include a large exposure limit and maximum loan terms for credit union lending.

From January 2020, the Central Bank set out new lending measures for credit unions. These changes increased the ability of individual credit unions to manage the composition of their loan books and provide those credit unions with the financial strength, the competence and the capability and the flexibility to undertake increased longer term lending, including home mortgage and business lending.

The Government is encouraged by the continued growth in mortgage lending by credit unions. Year on year to March 2024, mortgage lending has grown from €365 million to €615 million, an increase of 69%. This lending growth can be further supported through the enabling provision of the Credit Union (Amendment) Bill such as member referral.

The credit union sector continues to innovate in regards to mortgage lending and work is well under way to establish a mortgage credit union service organisation (CUSO). This will initially focus on establishing a common brand and mortgage product and it is expected that this product will be launched by year-end 2024.

A sizeable proportion of the sector (77 credit unions) have committed funding to the initiative and it is considered that the mortgage CUSO may help credit unions play a greater role in house lending.