This is the reply I received today from the secretary to the Minister for Finance regarding my email sent 20th April Re the SVR Campaign...
Department of Finance Office of the Minister
Ref No: 15/1251/MF
26th June 2015
Dear Ms S,
The Minister for Finance, Mr Michael Noonan TD, has asked me to acknowledge receipt of your recent email regarding variable mortgage interest rates.
The Minister has concluded a constructive series of meetings with senior management of Ireland’s six main mortgage lenders. The meetings focused on the mortgage market and specifically the comparatively high standard variable rates currently being charged by the banks. The purpose of these meetings was to discuss the mortgage market in general and specifically to raise the issue of standard variable mortgage rates charged by the six main lenders. The Minister outlined his view, that Standard Variable Rates being charged in the Irish market are too high. There was agreement from all lenders that customers should have access to more competitive mortgage products as per the Minister’s recommendation.
The banks agreed to review their rates and products and, by the beginning of July, to have simple options to reduce monthly mortgage payments for SVR customers. Some of the potential products include lower standard variable rates for existing and new customers, competitive fixed rate products and lower variable rates taking account of loan to value for new and existing customers.
In addition to the issue of rates the Minister also outlined the need for greater competition in the market and the need for a more active and well-resourced campaign by the individual banks. This should focus on promoting awareness of their best offering and how easy it is for customers to take up new products and switch between different institutions if they wish to avail of better rates.
The position of home owners who are in negative equity was also discussed and assurances were sought and received that these homeowners will be able to avail of options to reduce their monthly repayments.
Officials in the Department will review progress over the coming weeks and a follow up set of meetings with each of the six banks will take place in September in advance of the Budget.
I trust this information clarifies the position.
Yours sincerely,
Alex Lalor
Private Secretary to the Minister for Finance
Department of Finance Office of the Minister
Ref No: 15/1251/MF
26th June 2015
Dear Ms S,
The Minister for Finance, Mr Michael Noonan TD, has asked me to acknowledge receipt of your recent email regarding variable mortgage interest rates.
The Minister has concluded a constructive series of meetings with senior management of Ireland’s six main mortgage lenders. The meetings focused on the mortgage market and specifically the comparatively high standard variable rates currently being charged by the banks. The purpose of these meetings was to discuss the mortgage market in general and specifically to raise the issue of standard variable mortgage rates charged by the six main lenders. The Minister outlined his view, that Standard Variable Rates being charged in the Irish market are too high. There was agreement from all lenders that customers should have access to more competitive mortgage products as per the Minister’s recommendation.
The banks agreed to review their rates and products and, by the beginning of July, to have simple options to reduce monthly mortgage payments for SVR customers. Some of the potential products include lower standard variable rates for existing and new customers, competitive fixed rate products and lower variable rates taking account of loan to value for new and existing customers.
In addition to the issue of rates the Minister also outlined the need for greater competition in the market and the need for a more active and well-resourced campaign by the individual banks. This should focus on promoting awareness of their best offering and how easy it is for customers to take up new products and switch between different institutions if they wish to avail of better rates.
The position of home owners who are in negative equity was also discussed and assurances were sought and received that these homeowners will be able to avail of options to reduce their monthly repayments.
Officials in the Department will review progress over the coming weeks and a follow up set of meetings with each of the six banks will take place in September in advance of the Budget.
I trust this information clarifies the position.
Yours sincerely,
Alex Lalor
Private Secretary to the Minister for Finance