Dáil Éireann Debate, Tuesday - 21 October 2025
285. Deputy James Geoghegan asked the Minister for Finance if he plans to engage with the Central Bank on the subject of bridging finance for older people seeking to right size; the engagements he has had with the Central Bank and commercial lenders to date; and if he will make a statement on the matter. [56562/25]
View answerBridging finance can provide the funds needed to purchase a new home without waiting for the sale of a previous one. Where such finance is secured on a residential property, it is subject to the Central Bank’s mortgage lending rules.
There is no legal or regulatory provision which prevents lenders from providing bridging finance. However, in the case of older or retired people who have limited income, meeting the headline loan-to-value and loan-to-income limits set out in the mortgage lending rules may not be possible. In order to cater for such situations, the mortgage lending rules provide flexibility for a certain proportion of loans to be provided above the headline limits.
This flexibility is considered adequate for general lenders and therefore any issue is likely for more specialised lenders. In this regard, I understand the Central Bank is currently considering the topic of bridging finance, including any potential interactions with the mortgage lending rules. As part of their considerations, I understand they have met various organisations.
The decision of whether or not to provide bridging finance and the setting of the interest rate for such finance is ultimately a commercial matter for individual lenders which neither the Central Bank nor I as Minister for Finance have a role in or should become involved in.
My Department regularly engages with the Central Bank of Ireland on a range of matters including bridging finance. My officials will continue to work closely with relevant stakeholders in relation to this matter.
