Monday 24 July 2017

Major changes to Irish mortgage market recommended by competition watchdog

The competition regulator was asked to examine the market because mortgage costs here are the highest in Europe Stock picture
The competition regulator was asked to examine the market because mortgage costs here are the highest in Europe Stock picture
Donal O'Donovan

Donal O'Donovan

Major changes to the mortgage market including actively encouraging new players, a shift to more fixed rate loans and clearer pricing so borrowers are not misled have been recommended by the Competition and Consumer Protection Commission (CCPC).

The competition regulator was asked to examine the market because mortgage costs here are the highest in Europe.

The CCPC warned that without a "clear stated vision" there is a danger the housing and mortgage markets could once again put the solvency of the banking system at risk and severely impact the economy.

Read more: House prices here are not overvalued, insists the Central Bank

"The CCPC believes that is it important that there is a long-term strategy and shared vision for the mortgage market which would frame policy debate and give the context in which the CBI can make effective regulatory decisions. Such a vision should extend well into the future so as to avoid short term responses to long term structural challenges."

Online Editors

Promoted articles

Also in Business