I can appreciate how it might come across as vague Sarenco but my sense of unfairness is anything but. I feel we actually agree on quite a bit certainly that candidates will share my sense of outrage but offer little as far as suggestions to solve this. Our problem is that FG will probably get back in as I don't think the opposition will get the seat numbers and I know you're not trying to have a go. I do think the consumer protection authorities should be made do their job. We do disagree on certain solutions but something needs to be done as I have mentioned my concerns about higher rates when they come egarrears and repossessions. There's enough advisors on big money that should be able to come up with a workable solution , it's just there seems to be no effort to do something
"Minister Noonan has not asked the banks to reduce variable rates" - Indo
- Thread starter tonymac
- Start date
Fair enough Tony - I'm not for a second doubting your strength of feeling on this issue.
Tell you what, if a politician (any politician) canvasses you for a vote in the upcoming election, I would suggest that you don't let them off the doorstep until they tell you exactly what their party proposes to do on this issue if they participate in government. I'm regularly amazed how party positions change if they think it's costing them votes but you really need to nail them down on their specific proposals and then make your judgment.
Tell you what, if a politician (any politician) canvasses you for a vote in the upcoming election, I would suggest that you don't let them off the doorstep until they tell you exactly what their party proposes to do on this issue if they participate in government. I'm regularly amazed how party positions change if they think it's costing them votes but you really need to nail them down on their specific proposals and then make your judgment.
This is it and I sincerely hope that enough people will do so so as they realise that it still is an issue. I've heard nobody other than Michael McGrath mention it, somebody on another thread mentioned that they heard he did say it in the Dail. Obviously a low priority for them.
Michael McGrath is exactly who I had in mind in making my previous comments.
He certainly raises this issue on a very regular basis but has he actually proposed anything that would make any real difference? If he has, I've obviously missed it.
Making sounds about an issue and actually proposing something that will make any substantial difference are two very different things.
He certainly raises this issue on a very regular basis but has he actually proposed anything that would make any real difference? If he has, I've obviously missed it.
Making sounds about an issue and actually proposing something that will make any substantial difference are two very different things.
Brendan Burgess
Founder
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By continuously raising the issue, he has put pressure on the Minister, the Central Bank and the banks. He has been a key element of the campaign which has seen some reductions in mortgage rates.
And he has made solid proposals:
FF bill on mortgage interest rates
Hi Brendan
Yes, I referenced the two private members Bills in my earlier post (see post #59) but I do not believe either Bill would have been effective in achieving its objectives for the reasons stated.
The primary reason, in my opinion, for the rate reductions and new mortgage product launches that we have seen in recent months is a degree of competition re-emerging between the incumbent lenders to retain existing business and/or attract new business. Political pressure may have played some minor role in expediting this process but I believe it would have happened anyway.
The difficulty, of course, is that there is a cohort of borrowers that are not in a position to switch providers or to avail of lower fixed rates.
Yes, I referenced the two private members Bills in my earlier post (see post #59) but I do not believe either Bill would have been effective in achieving its objectives for the reasons stated.
The primary reason, in my opinion, for the rate reductions and new mortgage product launches that we have seen in recent months is a degree of competition re-emerging between the incumbent lenders to retain existing business and/or attract new business. Political pressure may have played some minor role in expediting this process but I believe it would have happened anyway.
The difficulty, of course, is that there is a cohort of borrowers that are not in a position to switch providers or to avail of lower fixed rates.
I emailed Noonan in October regarding the inability of some borrowers to change lender.
Dear Mr Noonan,
In you recent reply to Deputy Michael McGrath regarding the above you stated:
I expect that if financial institutions are convinced that there is a threat that they will lose existing customers, they will reduce the rates that they currently charge such customers.
Do you not realise that there are thousands of mortgage customers that can't switch lenders because of arrears, negative equity and ruined credit records? It is precisely because of these reasons that the banks can get away , unchallenged, with charging exorbitant rates to existing customers. It is incumbent on you and your government to do something to help these customers who can't switch financial institutions.
Yours sincerely,
demoivre
And his reply last Friday.
Dear demoivre,
The Minister for Finance Mr Michael Noonan TD has asked me to acknowledge your email dated 7th October 2015 regarding mortgage interest rates.
As you know, the Minister for Finance has taken steps to ensure that the banks provide options for mortgage holders to reduce their monthly repayments. This has involved engaging with the Central Bank and the main lenders on the issue.
The Minister asked the banks to provide options by which mortgage customers might reduce their monthly repayments and believes options have been put in place. These options range from lower variable rates to new suites of variable rates based on loan to value and reductions in fixed rates.
It would not be appropriate for the Minister to advise you what offer to accept. It is a matter for each individual borrower to decide what suits their circumstances but the Minister encourages borrowers to contact their bank to see what is available to them in their circumstances or consider moving to another bank, where possible, if the offer is not satisfactory. The Minister acknowledges that this may not be possible in certain circumstances, however changes to interest rates by the main lenders should in time drive competition in the mortgage market and exert downward pressure on other lenders to reduce their rates and/or provide other options.
The Department will continue to keep the situation under review.
I trust this information clarifies the position.
Yours sincerely,
_______________
Alex Lalor
Private Secretary to the Minister for Finance.
Why did I bother
Dear Mr Noonan,
In you recent reply to Deputy Michael McGrath regarding the above you stated:
I expect that if financial institutions are convinced that there is a threat that they will lose existing customers, they will reduce the rates that they currently charge such customers.
Do you not realise that there are thousands of mortgage customers that can't switch lenders because of arrears, negative equity and ruined credit records? It is precisely because of these reasons that the banks can get away , unchallenged, with charging exorbitant rates to existing customers. It is incumbent on you and your government to do something to help these customers who can't switch financial institutions.
Yours sincerely,
demoivre
And his reply last Friday.
Dear demoivre,
The Minister for Finance Mr Michael Noonan TD has asked me to acknowledge your email dated 7th October 2015 regarding mortgage interest rates.
As you know, the Minister for Finance has taken steps to ensure that the banks provide options for mortgage holders to reduce their monthly repayments. This has involved engaging with the Central Bank and the main lenders on the issue.
The Minister asked the banks to provide options by which mortgage customers might reduce their monthly repayments and believes options have been put in place. These options range from lower variable rates to new suites of variable rates based on loan to value and reductions in fixed rates.
It would not be appropriate for the Minister to advise you what offer to accept. It is a matter for each individual borrower to decide what suits their circumstances but the Minister encourages borrowers to contact their bank to see what is available to them in their circumstances or consider moving to another bank, where possible, if the offer is not satisfactory. The Minister acknowledges that this may not be possible in certain circumstances, however changes to interest rates by the main lenders should in time drive competition in the mortgage market and exert downward pressure on other lenders to reduce their rates and/or provide other options.
The Department will continue to keep the situation under review.
I trust this information clarifies the position.
Yours sincerely,
_______________
Alex Lalor
Private Secretary to the Minister for Finance.
Why did I bother
As he has already failed miserably to put any real pressure on the banks he waffles more and does not even answer the question posed I.e.what is the government going to do for the people who cannot switch?
Roll on the election and we all have option to switch party preference.
Roll on the election and we all have option to switch party preference.
Exactly to a word the reply I got from him. Yes roll on the election and I do hope that enough of the 300,000 SVR mortgage holders will make this a deciding issue on their voting preferences. I shouldn't have to say this but I suspect it won't be with a lot of them seeing as they have stayed so quiet during the campaign and have wrecked our chances of publicly highlighting it with protests by doing so. Typical in Ireland all huff but no puff. The election for me is the final chance for us so anyone reading please make it count.
summersday
Registered User
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But who would you suggest voting for? Who will do any different?
I am with EBS at 4,3% variable - bought in 2005 at the wrong time, not worth anything near what I paid!
It really annoys me that AIB, basically the same bank, charge only 3.65% - I feel screwed. At my rate there really isn't anyone to switch to I think. I'm dreading the day rates go up and the first time buyers allowance is gone - then I'll be in bother.
Rates are certainly something that will be a decider for me on who I vote for and it will be a question I'll ask at the door.
I am with EBS at 4,3% variable - bought in 2005 at the wrong time, not worth anything near what I paid!
It really annoys me that AIB, basically the same bank, charge only 3.65% - I feel screwed. At my rate there really isn't anyone to switch to I think. I'm dreading the day rates go up and the first time buyers allowance is gone - then I'll be in bother.
Rates are certainly something that will be a decider for me on who I vote for and it will be a question I'll ask at the door.
Michael McGrath the FF spokesman on finance has been very vocal on this subject.He introduced a private members bill in the Dail and attended the Fair Mortgage Rates campaign meeting last May in dublin.He has a clear grasp of the issues we are faced with.
Pearse Doherty has also spoke a number of times in the Dail.
Pearse Doherty has also spoke a number of times in the Dail.
Ger Fleming
Registered User
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I've just emailed minister Noonan and my local government tds to express my displeasure at the way he continues to ignore the plight of citizens paying way above the EU interest rates. I also stated that having listen to Joan Burton in the dail today I have finally resigned myself to the fact that there will be no change in this government's policy and what the banks say goes. Joan as usual didn't even answer the question put to her and went on with her usual spin and bull. I finally reminded Mr Noonan and my local tds that I would remember their lack of effort when the election time comes.
Hi summers day, sorry I'm only getting back to you now I've had problems with my password . Thanks also clonback as you're reply to summers day is very similar to what I was planning to write. Michael McGrath has been doing good work for us and his party will be getting support from me consequently. Brian Hayes has been doing some good work for us in Europe which I'm happy to acknowledge but my fault with him is that he didn't do anything when minister of state at the dept of finance as well as being from FG, the party of Michael Noonan.
I have lobbied both my local FG TDs and Minister Noonan - have received bland standard replies showing the progress they have made with some variables rates and fixed offerings. What they fail to address is the still too high variable rates and the issue that some mortgage holders cannot switch. We need to continue e mailing our local politicians - we cannot let them off the hook on this one, have to make this an election issue before the election!
Even for the mortgage holders that can switch it's a painful process. I'm in the process of switching from KBC. I'm losing the will to live
I supplied the initial documentation and then had new requests from the new bank. Every time a new request comes in I have to go off and get the documentation. That might take a couple of weeks. Then in the meantime the documentation I'd already supplied is too old so has to be applied for again.
My situation is probably complicated but I'm moving from a high interest bank to a lower interest bank just so I'm saving a couple of hundred a month. That's the only reason. We've been paying the mortgage for 8 years with no hassle and have paid off extra. I know the new bank has to do their due diligence but surely there could be an easier way.
This is just playing into the banks that have the higher interest rates. They know people don't want this hassle so they don't really have much incentive to reduce their rates.
I supplied the initial documentation and then had new requests from the new bank. Every time a new request comes in I have to go off and get the documentation. That might take a couple of weeks. Then in the meantime the documentation I'd already supplied is too old so has to be applied for again.
My situation is probably complicated but I'm moving from a high interest bank to a lower interest bank just so I'm saving a couple of hundred a month. That's the only reason. We've been paying the mortgage for 8 years with no hassle and have paid off extra. I know the new bank has to do their due diligence but surely there could be an easier way.
This is just playing into the banks that have the higher interest rates. They know people don't want this hassle so they don't really have much incentive to reduce their rates.