Deal includes: " A commitment to tackle high mortgage rates, including legislation if possible"

tonymac

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I see a great article in the independent today by a man who has highlighted our cause more than anyone, Charlie Weston regarding negotiations for the minority government. Credit also for Michael McGrath for making sure the SVR issue is included in the talks. Please god a solution will finally be reached through these talks although like everyone else I'll wait until action actually happens before we can actually mark a long deserved success for our campaign. Charlie mentions that It will come down to the new minister for finance placing the appropriate pressures to see reductions in the SVR'S so I do hope that won't take too long because if it does we need to continually remind him how serious this issue is. It also highlights that PTSB have admitted that they are no longer losing money on their tracker books, so surely the others, operating in similar conditions couldn't be very different. I to be quite frank don't care about any cost of funding, repossession legislation or any other excuses for the banks not reducing the rates anymore, nor do I want to hear any counter arguments about this, the ECB rate is 0, yes 0% and the cost of funds etc is 0.55%-0.7% and were paying upwards of 4%. What I want and ASAP are average eurozone SVR rates. I am also very surprised that there hasn't been a huge response to Charlies article on this site so I do hope my posting generates a real response and not a debate as to reasons why the banks are not acting, the banks are being backed into a corner and are running out of excuses.
 
Please god, people playing politics is of course a big threat but in fairness Michael McGrath has played a blinder on our issue for a long time. The main thing is he carries things into government. The thing is the pressure needs to be applied to whoever gets in and it needs to be kept on because this for me is the final chance for us to get a result.
 
Why was fine gael so lame on the issue?

They were only capable of doing the bidding of Europe
 
They for me didn't want to rock any boats with their european friends but they've got away with that for long enough. I wouldn't hold my breath but I'd be delighted if I knew that FG lost a few seats because of their lameness on this issue, my instincts tell me otherwise though in that they lost more due to the water charges issue. Charlie Westons article brings it home to people that were being savaged and the likes of FG, the banks and the " consumer protection organisations " are running out of excuses for their disgraceful approaches to this issue. The FSO has been nothing short of a disgrace on this issue but especially the withholding of the proper rates for people who had trackers removed illegally. The current FSO hasn't acted for the ordinary person, only for the banks and should resign ASAP and take up a role as a bank official for any of the main banks because he's behaved like he's getting payed by them to go against the ordinary people. The central bank has launched an investigation into the banks behaviour regarding trackers and not before time, I just wish it was broadened to include why they've allowed our banks to charge the highest SVR rates in Europe for so long and and have been allowed to get away with it, the only problem with that is theyre own behaviour has been so bad it couldn't be done they'd come out of it badly themselves, thus the reason why any investigation would need to be totally independent of them because they've totally forgotten that they've got a role as a consumer protection advocate, what a joke and any hope that Philip Lane might be different for me has gone.
 
Hi tony

I can't find the article online.

Can you provide a link or the title of the article.

The only thing I have seen is this article. Apparently, the deal just has bullet points:

■ A commitment to tackle high variable mortgage interest rates, including legislation if possible.


Brendan
 
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Hi tony

I can't find the article online.

Can you provide a link or the title of the article.

The only thing I have seen is this article. Apparently, the deal just has bullet points:

■ A commitment to tackle high variable mortgage interest rates, including legislation if possible.


Brendan
Hi Brendan, I'm not very techno savy, I'm going on Charlie Westons article in yesterday's indo, it was the lead story. The "if possible" bit I didn't see. There were a few more articles inside about it and as I said in my posting the other day it sounds promising but we won't believe it till we see the evidence. Everything in it says there are no more excuses for the banks, eg the reference to the admission by PTSB that theyre now making profit on trackers.
 
Thanks Rodger and hi Brendan im referring to the front page story on yesterday's indo, CUT TO INTEREST RATES ON THE WAY. Nobody's getting carried away but please god. Michael McGrath influence on government talks, just shows how bad the FG people have been for us on this if It can suddenly become possible to do something for us by them agreeing through the deal for government.
 
Political gombeenery won't change rates. Competition will. Frank Money's rates will be circa 2.75%, which will force the existing banks to lower their rates.

The last thing that's required is hamfisted political interference which is more likely to scare off potential entrants.
 
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I wrote to Michael McGrath about this and he told me there are serious negociations going on about Mortgage.

As all of us who voted know Fine Gael are an anti mortgage fairness party by the looks of things so after voting for them all my life I had to change to Fianna Fail. However I did reiterate to Michael that never again am I voting Fianna Fail if they dont make the difference they promised in their manifesto and address the mortgage issue.

The difference I think is that Michael Mcgrath feels strongly about this and thats good
 
Political gombeenery won't change rates. Competition will. Frank Money's rates will be circa 2.75%, which will force the existing banks to lower their rates.

How will it force existing banks to lower the rates they charge borrowers who can't switch lender ?
 
How will it force existing banks to lower the rates they charge borrowers who can't switch lender ?
Which is exactly the kernel of this issue! Nobody has come up with an option where any Government can effectively legislate on this issue. Pat Breen TD was interviewed on Morning Ireland today and the point was put to him as to how this issue would be implemented. He kicked it to touch and effectively it is aspirational only. No legislation will be introduced as it could be contested as restrictive and contested in the Courts.
See above post by Gordon Gekko!! This is the only option for a rate reduction!
 
How will it force existing banks to lower the rates they charge borrowers who can't switch lender ?

Increased competition would certainly benefit such borrowers if we introduced a statutory % cap on the rates that can be charged over the (rolling) average rate charged on all outstanding variable rate mortgages (including trackers).

The French have had laws to this effect since the 1960s so there is no reason to believe that this would cause a problem under EU law. We already have laws that cap the interest rates that can be charged by money lenders and credit unions and I have never heard anybody suggest that this legislation is questionable in any way.

However, if Michael McGrath ever succeeded in implementing his idea that the State (rather than the market) should fix mortgage rates, we could forget about any new entrants to the market. Why would anybody enter a market where the State can tell you what you can charge for your product? This idea, if implemented, would inevitably result in higher mortgage rates in the medium term due to a lack of competition. Political posturing, pure and simple.
 
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Why would anybody enter a market where the State can tell you what you can charge for your product?

Why would someone enter a contract where one party of the contract has complete control over the interest rate. We all do stupid things, but you could be right lenders are allot smarter then the consumers they trap.
 
Frank Money's rates will be circa 2.75%, which will force the existing banks to lower their rates.
Banks should be legally obliged to make any lower rates available to current customers and not just new business. In such a situation competition may well drive down rates for all.
 
Why would someone enter a contract where one party of the contract has complete control over the interest rate.
They consistently have done so and continue to do so!! SVR is effectively such a contract and at the moment is the only option available to all borrowers who don't fix their rates.
 
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