FSRA orders mortgage firms to tighten up

The Financial Services Regulatory Authority last night instructed mortgage firms to tighten up checks on customers’ financial circumstances.

It said there would be consultations involving both industry and consumers with a view to introducing a requirement on every lender to disclose the basis on which they had calculated the repayment ability of their customers.

Authority chief executive Liam O’Reilly said: “Our job is to promote the soundness of the financial institutions and the protection of their customers.

"It is important that institutions should only advance loans that are fully suited to their customers’ circumstances.”

The call came in response to the news yesterday that demand for mortgages is continuing to soar.

Figures from the Central Bank today showed home loans last month were 24.6% higher than in September last year and 0.4% more than during the previous four weeks.

During the month, financial institutions handed out close to €1.4bn to homebuyers.