Michael Noonan urged to stop mortgage ‘rip-off’

Finance Minister Michael Noonan has been urged to do more to stop Irish variable interest rate mortgage holders being “ripped off” by banks.

Finance Minister Michael Noonan has been urged to do more to stop Irish variable interest rate mortgage holders being “ripped off” by banks.

Fianna Fáil finance spokesman Michael McGrath said it was not acceptableIrish customers paid some 2% more than the eurozone average.

“Despite the spin from Government, the harsh truth is that up to 300,000 existing variable rate mortgage customers are still paying dramatically over the odds for their mortgage,” he said.

“Other non-Irish banks and US private equity funds now holding Irish mortgages also continue to charge between 4% and 5% on variable rate mortgages despite the incredibly low-interest rate environment at present.”

He said banks will point to new offers on fixed rates and loan-to-value products “but the truth is these products are only suitable for certain customers”.

“The variable rate mortgage product — as a product in itself — should be priced competitively and appropriately by each bank and this is simply not happening,” Mr McGrath said.

Mr Noonan is to meet bank chiefs next month and has warned about sanctions in the October budget unless they move on the issue.

More on this topic

Families reveal how mortgage draw downs being refused if in receipt of Covid 19 wage subsidyFamilies reveal how mortgage draw downs being refused if in receipt of Covid 19 wage subsidy

Irish Examiner View: Some home deposits in jeopardyIrish Examiner View: Some home deposits in jeopardy

Most homes ‘seized by familiar banks’, not vulture fundsMost homes ‘seized by familiar banks’, not vulture funds

Letter to the Editor: Mortgage moratorium comes with penaltiesLetter to the Editor: Mortgage moratorium comes with penalties


Lifestyle

If you are going to holiday in Ireland, you could hardly do better than Munster.Staycations 2020: Explore the marvellous magical kingdom of Munster

Tom Breathnach hails the beginning of Ireland’s 2020 staycation season.Fáilte Ireland: Land of a thousand welcomes once again

It is the fourth of May, 2007. I am coming home from work, tired and scrolling through images of Trapani, Sicily - our holiday destination in a few weeks. Nothing remarkable about the journey, until I read the story of a missing girl in Praia De Luz, Portugal.Learning Points: Give Madeleine McCann's family the space to put their lives back together

Happy 4th of July! The U.S.A. is waking up this morning to its annual star-spangled birthday, but as national celebrations go, you can expect a little less sparkle in the fireworks this summer. 2020 has been a torrid time for the nation; a pandemic, a racial awakening… a Trump presidency.What happens when America's borders reopen again? Our travel expert gets the lowdown

More From The Irish Examiner