Penalties for opting out of fixed mortgage to continue

THE Government will allow banks to continue to charge customers who want to switch from fixed-rate to variable mortgages.

Finance Minister Brian Lenihan has ruled out any intervention to stop the practice, despite the fact the major banks have been guaranteed by taxpayers’ money since last September.

There have been a spate of interest rate decreases in recent months, but mortgage holders on fixed rates cannot take advantage of these.