Brendan Burgess
Founder
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It would be useful to have a complete list of options, in roughly ascending order of intervention.
Option 1 - Do nothing. Allow the market to take its course.
Option 2 - The Central Bank Proposal Oblige the lenders to explain their Mortgage Rate Policy
Option 3 - The Equal Treatment Option - Lenders must make rates for new customers available to existing customers
Option 3A - Ban the 2% Cash Back and similar incentives which discriminate against existing customers or ban the clawback of such incentives if people later switch
Option 3B The SVR Model Lenders must quote an SVR and must quote all mortgages as a discount on the SVR. When they reduce rates, all customers would get the same rate reductions
Option 4 - The Protect the Captives Only Option - Let the market work for those who can switch, but protect those who can't. (I am not sure how Option 4 works in practice - it might be achieved through Option 5)
Option 5 - The Relative Rate Option - Set the maximum rate at no more than 33% above the average rate.
Option 6 - The Honohan Option - control rates for lenders not open to new business
Option 7 - The FF Option - Give the Central Bank the power to control rates in the event of a market failure
Option 8- The Sinn Féin Option - Apply the rules only to existing lenders or the Pillar Banks, so that new entrants would not be discouraged
Option 9 - The Fair Mortgage Rates Campaign Option - Set the maximum mortgage rate at 3% above the ECB rate but allow lenders to apply to the Central Bank for an exemption if they could justify it.
Option 10 - Set the maximum rate at ECB + 3% - no exceptions at all.
Option 1 - Do nothing. Allow the market to take its course.
Option 2 - The Central Bank Proposal Oblige the lenders to explain their Mortgage Rate Policy
Option 3 - The Equal Treatment Option - Lenders must make rates for new customers available to existing customers
Option 3A - Ban the 2% Cash Back and similar incentives which discriminate against existing customers or ban the clawback of such incentives if people later switch
Option 3B The SVR Model Lenders must quote an SVR and must quote all mortgages as a discount on the SVR. When they reduce rates, all customers would get the same rate reductions
Option 4 - The Protect the Captives Only Option - Let the market work for those who can switch, but protect those who can't. (I am not sure how Option 4 works in practice - it might be achieved through Option 5)
Option 5 - The Relative Rate Option - Set the maximum rate at no more than 33% above the average rate.
Option 6 - The Honohan Option - control rates for lenders not open to new business
Option 7 - The FF Option - Give the Central Bank the power to control rates in the event of a market failure
Option 8- The Sinn Féin Option - Apply the rules only to existing lenders or the Pillar Banks, so that new entrants would not be discouraged
Option 9 - The Fair Mortgage Rates Campaign Option - Set the maximum mortgage rate at 3% above the ECB rate but allow lenders to apply to the Central Bank for an exemption if they could justify it.
Option 10 - Set the maximum rate at ECB + 3% - no exceptions at all.
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