Michael McGrath
49,000 customers are still on 4.5% SVR? About a third of your book. Every one of them could gain by moving to a Managed Variable Rate.
Masding: We can't unilaterally move them to MVR
McGrath: But why not just reduce the SVR
Masding: We believe in risk based pricing
McGrath: many of them have low LTVs so could save up to 0.8%.
Masding: Yes - a customer in NE could get up to 0.2% reduction
Groarke: The average mortgage outstanding is around €90k
McGrath: Why are people not moving to the cheaper rate? Inertia?
Masding: We vary the approach . We don't like the term "inertia" as it can imply that we are exploitng the inertia of our customers
McGrath: Why don't you offer fixed rates to existing customers?
Masding: eh,eh. Good question. We are gradually introducing new products. The last time we were here we did not have fixed rates for new customers. Now we have. It's just a question of priority. We will as soon as we can in 2017.
McGrath: A borrower with an LTV of <80% can get a fixed rate of 3.2% if they are new.
Masding: We should have fair fixed rates for existing customers. You have my commitment that they will be available during 2017.
It depends on what matched funding we can source.
McGrath: Tracker Redress Programme. You restored 1300 trackers. What rate?
Mitchell: There are two types: one with a price promise and one without a price promise. 60% had a price promise. the others were between 2 and 3%
McGrath: You are part of the general CB ongoing review
How many are affected
When do you expect it to be completed
What will be the financial consequence
Masding: We were a pathfinder in terms of the CB enforcement action
In Sept 2015, we unilaterally undertook to do a full review of our book, which was rolled into the CB industry review.
WE can't speculate, as it's quite early
Once we find detriment, we move as quickly as we can. We will find issue. Transparency is important.
The scheme itself. We have put aside the right level of capital.
Mitchell: No we have not picked up everyone. The initial one was a very specific. The new review is more wide ranging
We have jsut completed Stage 2
WE expect to go through Stage 3 and 4 in 2017