Central Bank doesn't want power to cap mortgage rates, says Noonan

Central Bank doesn't want power to cap mortgage rates, says Noonan

Finance Minister Michael Noonan has said that a Fianna Fáil Bill on mortgage interest rates is unconstitutional and seriously flawed.

The Bill proposes to give the Central Bank powers to cap the amount lenders can charge for standard variable mortgages.

Michael Noonan said that he will propose hat the Bill be sent for further scrutiny when it comes up in the Dáil later today.

Minister Noonan believes there are a number of problems with it.

"The Governor of the Central Bank said he doesn't want these powers, and the way the legislation is drafted, the power leaves it at the discretion of the Central Bank to use them," he said.

"If you have a Central Bank that doesn't want the power and it's not mandatory that they should use the power, it seems to me it is destined to be a very ineffective piece of legislation."

More on this topic

Thousands will lose their homes, warns campaigner David Hall as Ulster Bank announces mortgages saleThousands will lose their homes, warns campaigner David Hall as Ulster Bank announces mortgages sale

Central Bank data shows slight fall in mortgage arrearsCentral Bank data shows slight fall in mortgage arrears

No Consent, No Sale bill 'should be no-brainer'No Consent, No Sale bill 'should be no-brainer'

SF 'No Consent, No Sale' bill could have 'severe unintended consequences', says Central BankSF 'No Consent, No Sale' bill could have 'severe unintended consequences', says Central Bank

More in this Section

EU probing Amazon over use of retailers’ data to gain edgeEU probing Amazon over use of retailers’ data to gain edge

Banks 'must be controlled', Oireachtas Finance chair saysBanks 'must be controlled', Oireachtas Finance chair says

Sterling falls to seven-month low against euroSterling falls to seven-month low against euro

Consumer spending in June fell to lowest level in five yearsConsumer spending in June fell to lowest level in five years


Lifestyle

Christy Collard and Robin O’Donovan are parents to six children, but sustainability is still a cornerstone of their busy lives in west Cork.The family that composts together stays together

Ron Howard was happy to let the spirit of Luciano Pavarotti shine through in his documentary on the great tenor, writes Laura Harding.Hitting the right note with new Luciano Pavarotti documentary

Prevention is so much better than cure, says Fiann Ó Nualláin, who offers gardeners timely advice on guarding face and body against those potentially damaging ultra-violet rays this season and beyond.Gardening: Be skincare-savvy for summer

It's never been more important to choose flowers and trees according to their environmental needs, says Peter DowdallIn these times of climate change, choose plants to weather all conditions

More From The Irish Examiner