Lenders called on to cut high mortgage rates

Head of the Irish Brokers Association Ciaran Phelan said lenders should not abuse the situation where there is little competition in the banking market. He said banks should reduce mortgage rates for first-time buyers and for existing mortgage holders on high variable rates. Around 200,000 existing mortgage holders are variable rates averaging 4.5pc. This is almost five times higher than the typical tracker rate.The gap in monthly repayments between someone with a tracker and someone on a variable, for the same sized mortgage, is now more than €300 a month.

“Our message is quite simple – we want the banks to reduce their rates to promote a fairer and more competitive market for those looking for new mortgages. “Lower rates mean more affordable repayments and greater spending power in the rest of the economy.”

Irish Independent 13th August 2014