Dáil Éireann Debate, Thursday - 25 June 2026
253. Deputy Donna McGettigan asked the Tánaiste and Minister for Finance if his attention has been drawn to banks that have refused to take carer's allowance payments into account when calculating household income and when assessing mortgage applications; if this is standard practice across banks and lending institutions; the actions he will take to ensure this practice is ended; and if he will make a statement on the matter. [48402/26]
View answerThere are a certain legal and regulatory requirements lenders have to meet when providing mortgage credit to consumers.
For example, with a certain level of flexibility, lenders have to comply with the Central Bank's macro-prudential measures for residential mortgage lending which apply certain loan-to-value and loan-to-income requirements in relation to residential mortgage lending.
In addition, the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 require lenders to assess the creditworthiness of the borrower and provide that mortgage credit should only be made available 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.
Furthermore, the revised Consumer Protection Code 2025 imposes 'Knowing the Consumer and Suitability' requirements on lenders which requires them to gather and record sufficient information from the consumer in order to assess the suitability and affordability of credit based on the individual circumstances of the mortgage applicant.
Within this general regulatory framework, it is then a commercial matter for individual lenders to decide whether or not to provide a loan in any particular case, or how much credit to provide in any particular case, having regard to their own lending policies and underwriting criteria. Those are commercial matters for individual lenders and, as Minister, I have no function or role in such decision-making matters by credit institutions. However, it can be noted that there is nothing in the regulatory framework which prescribes the type of income mortgage lenders may or may not consider when assessing an application for mortgage credit; any such distinction is solely a commercial matter for the individual lender.
The Central Bank has indicated that it expects all regulated firms to take a consumer-focused approach and to act in their customers’ best interests at all times. The regulatory framework provides that where a formal application for credit is turned down the lender must outline to the consumer the reasons the credit was refused and to provide those reasons on paper if requested by the consumer.
If a mortgage applicant is not satisfied with how a regulated firm is dealing with them in relation to an application for credit, 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 firm, he or she can refer the complaint to the statutory Financial Services and Pensions Ombudsman.
