The Central Bank has published a consultation paper on ‘Increased Protections for Variable Rate Mortgage Holders‘. The proposal includes:
- an obligation on lenders to publish a summary statement of factors impacting on the rate and to update accordingly;
- an obligation on lenders to notify variable rate borrowers of alternative mortgage options on an annual basis and upon an increase in the variable rate; and
- increasing the 30 days' notice period for forthcoming variable rate increases in order to allow customers more time to consider alternatives;
- an obligation to require lenders to state the reason for a rate change;
The closing date for submissions is 12 February 2016.