Saturday 1 October 2016

Noonan must act now on banks' mortgage rates

Published 04/04/2015 | 02:30

Michael Noonan
Michael Noonan

By a quirk of fate, we have a two classes of mortgage holder in this country. The fortunate ones, those on trackers, are paying 1.05pc. The less fortunate are new customers who have been enticed by the financial institutions with the lure of new mortgages at 4pc. The really unfortunate, 300,000 home owners on standard variable mortgages rates, are paying 4.5pc, double what many mortgage holders pay elsewhere in Europe, which is awash with cheap money.

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The financial institutions are fleecing these two groups to pay for the 60pc of tracker mortgages on their books, which they claim are loss making.

Finance Minister Michael Noonan cannot sit on his hands and allow this abuse of mortgage holders by banks, bearing in mind that AIB and Bank of Ireland made €2bn in profits between them last year.

The Central Bank has never shown any great interest in protecting the consumer from the predatory behaviour of the banks and has given no leadership or direction on this issue.

What banks are doing to holders of standard variable rate mortgages is unconscionable and has to end. Act now Mr Noonan.

Irish Independent

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