Michael Noonan has indicated he may move to help buy-to-let customers having difficulty keeping up with mortgage payments
In a written answer to a parliamentary question, the Minister for Finance Michael Noonan has indicated he may move against banks that increase rates on buy-to-let borrowers who are trying to stay on interest-only tracker mortgages due to cashflow difficulties.
The current law designed to prevent a new wave of mortgage default applies only to principal private residents and not to investment properties.
Banks such as Permanent TSB have already started moving on customers with buy-to-let properties who have interest only or tracker mortgages.
While it is obliged to enter into negotiations with customers in difficulty on payments on their family home, it is not obliged to show any such leniency with customers on buy to let.
However concerns are growing that buy-to-let mortgages could be the noose around many householders’ necek and Noonan said he would ask the regulatory authorities to examine this area to see if something could be done.
He was responding to a parliamentary question from Fine Gael deputy Jim Daly, who asked if he would make any intervention in relation to the buy-to-let policies of bailed out Irish banks.
Case story: “I can’t afford my four rental properties”