Dáil Éireann Debate, Tuesday - 29 September 2015
134. Deputy Pearse Doherty asked the Minister for Finance if he will report on his recent meetings with the banks on the issue of the high standard variable rates paid by Irish mortgage holders; and if he will make a statement on the matter. [32858/15]
View answerAs the Deputy will be aware, I have taken a number of steps to ensure the banks provide real options for mortgage holders facing high repayments. Most recently, I concluded a second series of meetings with the six main lenders on this issue last week.
As you know, back in May I first met with senior management of the six main mortgage lenders and outlined my view that the interest rates being charged to Irish customers were too high. The banks agreed to review their rates and products and, by the beginning of July, to have simple options to reduce monthly mortgage payments for SVR customers. Some of the potential products include lower standard variable rates for existing and new customers, competitive fixed rate products and lower variable rates taking account of loan to value for new and existing customers.
At the subsequent set of meetings which concluded last week I discussed a number of topics with the banks, including a review of the progress that has been made on this issue. The reality is that the majority of the lenders have now put options in place to allow borrowers to reduce their monthly repayments.
I would therefore encourage borrowers to contact their bank to see what is available to them in their particular circumstances or consider moving to another bank if the offer is not satisfactory.
Central Bank research suggests that 21% of existing PDH variable rate mortgage customers could save by switching their provider. I expect that if financial institutions are convinced that there is a threat that they will lose existing customers, they will reduce the rates that they currently charge such customers. In this regard, the Competition and Consumer Protection Commission website www.consumerhelp.ie is a valuable source of information on the rates charged by various financial institutions.
