Banks deny home loan switch profits

THE Irish Banking Federation (IBF) has denied suggestions that its members are profiting from mortgage holders switching to more affordable interest rates.

Chief executive of the IBF Pat Farrell said the Financial Regulator’s office is examining the formula banks use for charging borrowers who switch between types of mortgages.

This was the result of people with fixed-rate mortgages being charged hefty fees to move to variable rates and take advantage of the current low rates.