Data provided by the Central Bank indicates that mortgage switching (defined, for the purposes of this response, as loans issued by one lender to refinance an existing mortgage with another lender) in Ireland peaked in 2006, when approximately 27,000 mortgages switched provider.
Between 2009 and 2014, switching decreased significantly, reflecting subdued lending activity in the overall Irish market at that time. From 2015 onwards, the number and value of switcher loans has increased and, in 2017, just under 5,400 mortgages switched provider.
The number and value of mortgage switches from 2003-2018 is detailed as follows in tabular form.
|
Year
|
Value €m
|
Re-mortgages
|
|
2003
|
1,775
|
14,247
|
|
2004
|
2,737
|
18,121
|
|
2005
|
5,038
|
25,944
|
|
2006
|
6,067
|
26,565
|
|
2007
|
6,675
|
25,937
|
|
2008
|
5,295
|
21,374
|
|
2009
|
1,130
|
5,774
|
|
2010
|
461
|
2,722
|
|
2011
|
174
|
1,137
|
|
2012
|
64
|
455
|
|
2013
|
51
|
292
|
|
2014
|
100
|
503
|
|
2015
|
319
|
1,433
|
|
2016
|
524
|
2,438
|
|
2017
|
703
|
3,070
|
|
2018
|
1,242
|
5,377
|
As part of a range of competition measures agreed with the European Commission under their respective EU-Restructuring plans, AIB and Permanent TSB were required to provide funding for a public awareness campaign to raise awareness and promote customer switching. A total of €1.8 million is committed as part of the restructuring of the banks. There is no cost to the taxpayer in relation to this public awareness campaign.
The Department of Finance oversaw a contract for the provision of research, design and media buy services for a public awareness and customer switching campaign in retail banking markets. This campaign has focused on encouraging people to compare financial products such as current accounts, credit cards and mortgages and directed them to the website www.switchyourbank.ie which provides information on how to switch. The campaign has run on a variety of media channels, including TV, radio and digital. Of the overall budget for the public awareness campaign of €1.8 million, over €1.5m has been spent to date. The Department of Finance is currently in consultation with the European Commission regarding how the remaining funds will be spent.
Section 10(1) (b) of the Electronic Commerce Act 2000 excludes “the law governing the manner in which an interest in real property (including a leasehold interest in such property) may be created, acquired, disposed of or registered, other than contracts (whether or not under seal) for the creation, acquisition or disposal of such interests,”.
Subsections (2) and (3) of section 10 provide, however, that the scope of the Act may be extended to excluded areas or subjects by means of regulations made by the Minister for Communications, Climate Act and Environment where the Minister is of the opinion that:
“(a) technology has advanced to such an extent, and access to it is so widely available, or
(b) adequate procedures and practices have developed in public registration or other services, so as to warrant such action, or
(c) the public interest so requires,”
The Minister for Communications, Climate Act and Environment must consult with Ministers who have a sufficient interest or responsibility in relation to the area or subject being considered.
