"Coalition warns banks: reduce variable rates or face levy hikes"

Tommy/Brendan.

I think Banks are already increasing charges in a variety of ways ,by their nature, Banks will squeeze where they can, the quoted logic on increasing levy is that that fund could be used to reduce Universal Social Charge (USC) on the coping classes ie the 300,000.

Ideologically Government seem hell-bent on selling our stake in Banks , so with that ideology, I cannot see Government
really forcing Banks in any substantive way.

Question? Why should we sell AIB/Ptsb?

The Government could increase the TRS to 50% for variable mortgage holders only, until proper competition drives down the variable rates. This would effectively reduce the interest portion of repayments and not levy the banks at the same time.

Is this the famous bank levy that is fully deductible against corporation tax or .. is it another one?

And all the nonsense about Central Bank powers -- the US regulators just threaten to take the licence and look what happens.

Threatening to impose a levy on Banks is futile as there is no co relation between it and reduction in SVRs. What is the Government going to do? Ringfence it and set up another quango to administer it to all SVR holders? Imagine how that would work ! And it would be the only FAIR way .....

Futures & Brendan, Of course those who don't engage or won't pay should not have the advantage of remaining in their current home.

Those in difficulty other than above should consider down sizing or moving but because of their arrears have a dented ICB report so are not in a position to acquire a smaller home/mortgage. There are houses for sale for small money in various parts of the country but, after selling mortgage arrears house, there is no chance of acquiring a loan to buy any home, anywhere. Renting is the only answer for these people.

Threatening repossession should not be "the solution" for those who are paying towards their mortgage ---even if it is not the full amount. Banks should be much more innovative in finding workable solutions particularly where there is age advantage. Put a new contract in place for ,say, 10 yrs at reduced repayment rate, review, increase repayments in line with by then, hopefully increased income, review again etc....up to 30 yr period. If terms are not adhered to, part of the contract be that house has to be sold.....to redeem mortgage. Too simplistic ?.. But reaching targets is the aim. For older mortgagees, like myself, the holder will probably be gone before the mortgage is.

110quests said:

Those in difficulty other than above should consider down sizing or moving but because of their arrears have a dented ICB report so are not in a position to acquire a smaller home/mortgage.

Click to expand...

Hi

I am not sure about that.

Most of the banks offer a trade-down mortgage as part of the solution to an unsustainable mortgage.

It will usually only be worthwhile where someone has a mortgage of €500k on a €600k house. The lender may well give them a mortgage of €300k on a €400k house.