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Fianna Fail’s Bill on Mortgages, entitled ‘Central Bank Variable Rate Mortgages Bill 2016’, passed by the Dail this week, puts fairness of mortgage rates top of the Central Bank’s agenda, according to Kildare North Deputy Frank O Rourke, after speaking in the Dail on the Bill during the week.
‘As I said in my Dail contribution on the Bill, customers on typical variable rate mortgages are paying approximately €1,500 per year more than new bank customers and €6,000 more per year than people with a tracker mortgage for the same amount.’
‘‘Indeed, some mortgage holders in this jurisdiction are paying up to nearly €4,000 a year more in interest than customers with comparable mortgages in Northern Ireland and other European countries. This is simply unfair.’
‘These high variable interest rates mortgages are a key issue in my constituency. The issue has been raised at my clinics in Celbridge, Leixlip, Maynooth, Clane, Prosperous, Naas and Kilcock over the past year. A mortgage is the single biggest financial commitment for many families, and people on these variable mortgages have felt the least benefit from the current low interest rate environment in Europe. Our Bill is designed to provide some relief to these families.’
‘Our Bill gives the Central Bank the authority to put a cap on interest rates if banks are found objectively to be charging unreasonable variable mortgage rates. In our view, this policy initiative will go a long way to relieving this variable mortgage rate problem,’ stated Deputy O’Rourke.
‘The current approach adopted by the banks is simply unfair. The Fianna Fail Bill, which will mark a significant change in the relationship between banks and their customers, will put fairness at the heart of mortgage rate policy. It will give mortgage holders more protection against rip-off bank practices. Any financial benefit that families receive from reduced variable mortgage rates, will be much needed for other financial commitments that families have. Indeed, it will mean that there will be more money available for spending in the local economy, rather than artificially improving bank profits,’ concluded Deputy O’Rourke.
