Here is the quote from the Central Bank's Opening Statement
"The vast majority of SVR borrowers in positive and negative equity could benefit from either switching to another provider or to another product with the same provider. Switching offers the dual benefits of potentially reducing monthly costs and/or the length of the mortgage, with potential savings of tens of thousands of euros. The more people who start to switch, the less the ability the banks will have to differentiate between new borrowers and existing."
And in response to Michael McGrath
Sibley
97% of SVRs can switch to a lower rate.
Where does this come from?
AIB has about 25% of the market. Here are their rates:
They can't switch to a lower rate within AIB.
Those with a restructured loan or with LTV >90% can't switch to another lender.
Those on LTV <80% could switch to KBC to get a reduction of 0.2%, but it's KBC's policy not to pass on rate cuts to existing customers so they would be stupid to do so.
KBC
Those over 90% LTV can't switch to another lender and I don't think that they can get a cheaper product from KBC.
Many who could switch are on low rates and would not save by switching to another lender.
BoI
Every variable rate customer can get a lower rate by fixing.
ptsb
Those on SVRs can switch to an MVR and should do so.
Those on MVRs who could switch to another lender should do so.
But many can't switch due to NE or arrears.
Brendan