Central Bank at the Oireachtas Finance Committee to discuss SVR Bill

Andy836 said:
I do not agree that new mortgage rates should be available to pre-existing borrowers. A contract is a contract and if you don't like it you should switch.
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What about entrapped customers that cannot switch?

You appear to suggest that there is a high level of borrowers in that position.
 
The level of switching I agree is exceptionally low considering the amounts that can be saved by doing so and as has been said elsewhere in other threads anyone who can switch and doesn't is just being lazy although I can appreciate that for quite an amount of people the current process is daunting, the process needs to be simplified as soon as possible. The issue of the captives needs to be addressed as does the ongoing fact that a lot of good customers who are paying their mortgages are carrying the can for arrears and the low levels of repossessions in this country. I know banks are businesses and need to be profitable but the good payers are being screwed up to the hilt and this is where the CB needs to be doing its stuff and protecting these people. Thsee issues for me have not been given the profile they warrant. Fair enough I think each case of arrears needs to be looked at with regard to repayment ability primarily but ultimately non performing loans need to be dealt with as there are as ive said other people suffering due to the non repossession of security and nobody gives a damn about them.
 
This is your contribution:

A contract is a contract and if you don't like it you can switch

And if you can't switch

Tough
 
The idea that lenders should be prohibited or restricted from offering enhanced terms to new customers is bizarre. We don't restrict any other business from making promotional offers to attract new customers - why should money lending be treated any differently?

I disagree with Andy on one point though - I happen to think that borrowers that are not in a position to refinance their loans are deserving of a degree of statutory protection.
 
From looking at the Joint Oireachtas Finance Committee discussion to the SVR issue to date, it appears that the Central Bank has admitted that the mortgages, that have been sold on to vulture funds, have less consumer protections than those that remain within the regulated sphere. Especially in relation to any future setting of the variable interest rates by these funds. Would that be fair to say.
 
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