Fianna Fáil is calling for the government to bring forward legislation to protect mortgage holders.

The party's spokesperson made the comments after the Bank of Ireland announced that its ICS division is selling €250m worth of mortgage loans to Dilosk.

Deputy McGrath said: "Mortgage holders whose loans are with a financial institution regulated by the Central Bank of Ireland currently enjoy the projection of the Code of Conduct on Mortgage Arrears and have recourse to the Office of the Financial Services Ombudsman if a dispute arises with their lender.

-- Advertisement --

"In the event that their loans are sold to an unregulated their party they lose these rights and potentially are exposed to higher variable rates, more interest surcharges and a heightened risk of action for repossession. In simple terms people who find their mortgages sold in such circumstances are at the mercy of unregulated third parties.

"The Government have promised legislation in 2015 to deal with the sale of mortgages to unregulated entities. That is too late. We need action now."

Deputy McGrath has already raised the issue with the Taoiseach, however no indication of when the legislation would be introduced was given.

(CD/JP)