Possibility of Government introducing legislation around mortgage interest rates...

G

gal

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Hi, I was listening to Brian Hayes on the radio this morning talking about this issue. For anyone who didn't hear this, here is a brief summary.

It's with the FR, Mr Elderfield, to get back to the government on the best way forward. Expecting a response soon.

May not be legal, under EU law, to introduce such legislation.

It will probably depend on factors such as; is the bank availing of the state guarantee, is the bank funded by the ECB, does the state have partial ownership of the bank etc...

So, I'm curious as to people opinions on this. What is the possibility of this happening and also what form would the legislation take?
Could it possibly be something like: No bank can charge X% over ECB ?

The reason i'm asking is because I am indecisive about fixing my mortgage with NIB or remaining variable.

As far as I'm aware NIB is not under state guarantee and is not funded by the ECB which does not bode well for me.
 
Somebody needs to put manners on the banks to make them pass on reductions to people who are struggling.
 
Hard to see how this could be fairly enforced in practice. Why should AIB for example be forced to reduce their interest rates when they are already below other banks such as PTSB?
 
onq said:
Somebody needs to put manners on the banks to make them pass on reductions to people who are struggling.
Click to expand...

I think I read somewhere that the reasons put forward by the banks is that they did not put up the rates in the first place. And if this is so, then forcing them to reduce the rate further would result in the taxpayer being hit once again, to say nothing of the fact that banks would also have less cash to lend out to businesses etc...

Can anyone confirm that the rates were not put up last time?

Jim
 
Minister Varadker made it quite clear today that the Gov would not be forcing AIB to reduce it's Variable mortgage rate. While some posturing may continue on this issue I would hold out little hope of any legislation being introduced.
 
Varadker was on George Hook show earlier this evening. Obviously from your recent post he was not well informed.
 
Amazing, and one would have to ask what was the tipping point in their U turn?
In fairness, AIB were the last of the big 3 I expected to be cajoled into capitulating due to the fact that they didnt pass on the last 2 rate hikes. Surely Mr Hodgkinson didnt just have a moment of 'mature reflection' after his meeting with Enda and subsequent statement....

However, good to see.

Looking at the SVR rates now offered by the lenders, the chasm between AIB SVR and PTSB SVR is huge (3% V 5.9%).

One wonders will there be pressure at some stage to try to align (somewhat) the SVRs offered by the domestic institutions? Would be a legislative nightmare, but whatever arm twisting resulted in the AIB about turn could be leveraged?
 
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