2026-02-10

159. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Finance the action he is taking to protect the rights of mortgage holders whose mortgages were sold to non-bank lenders after the crash; and if he will make a statement on the matter. [10058/26]

I want to ask about families who have had their mortgages sold to vulture funds. This has caused an incredible amount of stress and anxiety to people all over the country. These people are supposed to have the same rights as anyone else under the code of conduct on mortgage arrears, but this has not been the real lived experience of many people. What is the Government doing to ensure these mortgage holders’ rights are protected?

I thank the Deputy for this important question. There is a wide range of measures in place to protect mortgage holders through the consumer protection framework, but it is an issue on which we must always remain vigilant. I am pleased to see that arrears over 90 days are now at their lowest levels since 2009, at 3.4% of all private dwelling house accounts. We all welcome that after the horrific period people went through after the financial crash in this country. We need to remain vigilant. We have a framework that requires all regulated entities to be transparent and fair in their dealings with borrowers. It ensures that borrowers are protected from the beginning to the end of the mortgage life cycle. The same protections apply to mortgage holders regardless of the regulated entity with which they are dealing, whether it is a bank, retail credit firm or credit servicing firm. If there is any deviation from that, I would welcome examples and would point out that there may be recourse to the likes of the Financial Services and Pensions Ombudsman. All credit servicing firms are required to be authorised and supervised by the Central Bank of Ireland. They are subject to all relevant regulatory requirements and financial services legislation. These include the Central Bank of Ireland's consumer protection code and the code of conduct on mortgage arrears. The consumer protection code is the cornerstone of the Irish financial consumer protection framework. It requires regulated firms to meet minimum standards of care towards their customers and to ensure regulated firms operate to protect their customers' best interests. A revised and enhanced version of this code will come into effect next month, which will include enhanced provisions in relation to mortgage providers. For example, mortgage providers are currently required to issue a notification to customers either annually to variable-rate mortgage holders or at the maturity of fixed rates. The notification sets out a summary of alternative mortgage products available from that provider. Under the revised code, recognising the role that switching can play in an effectively functioning mortgage market, mortgage lenders will be required to include within these notifications a personalised euro savings estimate alongside each alternative mortgage refinancing option presented. Lenders will also be required to provide a specific reminder to customers concerning mortgage refinancing options. The code of conduct on mortgage arrears requires regulated firms to have a transparent process in place for dealing with borrowers in, or at risk of, mortgage arrears.

I am not sure that the Tánaiste understands the extent of the problem. I thank him for the answer he has given. The code of conduct on mortgage arrears is not being enforced. People go through absolute hell when their mortgage is sold on. The Tánaiste asked for an example and I will give him one. I spoke recently to a person who had their mortgage sold through the State-engineered Project Glas, despite the fact that according to Central Bank rules her mortgage was actually sustainable – it was in positive equity. It has since been sold again even though repayments were being made. She has faced serious data breaches, wrongful receivership and long regulatory delays. She has not even been able to find out if the latest vulture fund has lawful title to her home. She is now facing a repossession order and potential homelessness. I am asking the Tánaiste what he is actually doing about this. It is fine to have all these procedures in place but they are not being enforced and people are going to hell as they try to have the protections that should be applying to them applied.

As I said at the outset, we must always remain vigilant in this area. I am putting the facts and the law on the record of the House in terms of the obligation on all regulated entities that should be consistent regardless of the entity. Of course if there are any examples - the Deputy has given me one - they should be pursued fully. While I am not getting involved in individual mortgages, I am very happy to discuss the broader issue and, indeed, any examples the Deputy wishes to give me with the Central Bank as well. The Deputy has asked what actions have been taken. We are seeing further enhancements in relation to the code coming into place next month. I am very sorry to hear about the very difficult case the Deputy has rightly highlighted this evening. We have very clear standards that are expected to be followed in relation to all mortgage holders, regardless of which bank or entity holds their mortgage. Any breaches of those standards should be pursued rigorously with the authorities. I am very happy to discuss that further with the Central Bank and pursue that example.

The person who contacted me recently told me of how the cumulative impact has been devastating. She has lived for over a decade under constant stress and uncertainty with profound effects on her mental health and physical health, her family life and her ability to live with dignity in later life. She is now facing the risk of imminent homelessness. She has tried to go through the regulatory process. She has been on to the Financial Services and Pensions Ombudsman and so on. Having worked in an area related to this one, she has an ability to try to advocate for herself that a lot of people would not have, and she has still found it impossible. The reality for people is that they have experienced multiple breaches of regulations but every time they try to fight that, it is extremely difficult for them. They are faced with punitive interest rates that often mean they have effectively paid off the capital on their home and the normal interest rate but they are still stuck in a perpetual mortgage. I am asking the Tánaiste what he is going to do to address this.

I genuinely do not wish to be argumentative about this because the case the Deputy highlighted is clearly one that is causing his constituent or the person who contacted him extreme pain and anguish. However, my genuine belief from my engagement with officials and with the Central Bank - this is a broader point around the enforceability of the protections that are already there - is that the protections that are there are robust and are meant to apply without fear or favour to all regulated entities. I take very seriously any entity that does not follow those standards because they are the laws of our land. They are the structures we have in place. I do not have the benefit of the information the Deputy has. While I will not get involved on an individual mortgage, I am very happy to take that as an example and discuss it directly with the Central Bank and revert to the Deputy if he wishes to send it on to me.