IFA opens new front on mortgage interest rate controversy

Farming organisation IFA and its 75,000 members yesterday opened up a new front on the controversy surrounding high rates that Irish lenders charge for mortgages, saying that politicians need also focus on “excessively high” business rates facing farmers and SMEs too.

It comes as finance minister Michael Noonan attacked a bill that Fianna Fáil says would empower the Central Bank to implement some sort of cap on the amount that lenders can charge for their standard variable home loans.

The minister said that though the Government favoured lower home-loan rates that some parts of the planned legislation “appears unconstitutional” and that the ECB would need to be consulted.