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.

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.