Benefits of a single market for mortgages

The European Single Market is one that seeks to guarantee the free movement of goods, capital, services, and labour — the “four freedoms” — within the EU.

A properly functioning single market stimulates competition and trade, improves efficiency, raises quality, and helps cut prices charged to consumers.

But one of those ‘freedoms’ isn’t so free, as anyone taking out a mortgage for a home in Ireland will know.

The current average standard variable rate in Ireland is 3.26% compared with 1.83% in the eurozone.

Banks are reluctant to lend cross-border because of different insolvency regimes and a lack of harmonised credit history information.

MEP Brian Hayes is leading the charge in Brussels and wants Taoiseach Leo Varadkar and Finance Minister Paschal Donohoe to campaign for a single EU market for mortgages.

He is probably pushing an open door, as the Taoiseach made it clear in his speech to the European Parliament in

January that he would like to see the single market achieve its full potential in the areas of mortgages and insurance.

That should not be beyond the powers of the 19 eurozone member states. After all, we already have a common

currency and a common central bank, so why not a common mortgage market?

The benefits of the single market should not be confined to business. Consumers want a fair deal, too.