Sunday 30 April 2017

Noonan must act now on banks' mortgage rates

Michael Noonan
Michael Noonan
Editorial

Editorial

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.

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.

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