Ceisteanna—Questions. Oral Answers. - Mortgage Interest Rates.
- Building society mortgage interest rates 8 speeches
Desmond asks whether increased deposits could prompt lower mortgage rates. Barrett says rates depend on competing institutions’ deposit rates and may respond to bank-rate changes; he disputes that rates are at an all-time high.
Barry Desmond, Sylvester Barrett, John Horgan, Thomas J. Fitzpatrick, Michael Keating
- Subsidising interest rates after EMS entry 3 speeches
Quinn asks whether the Government would subsidise lending rates if EMS entry fails to lower them. Barrett says he has no plans to do so.
Ruairí Quinn, Joseph Brennan, Sylvester Barrett
asked the Minister for the Environment if, in view of the alleged substantial inflow of deposits to the Irish building societies, the Government have approached these societies with a view to a reduction in their current mortgage interest rates.
Comment on this
I am aware that there has been a substantial increase in the net inflow of moneys to building societies recently which, I understand, may be mainly due to the repatriation of assets consequent on Ireland's intending entry to EMS. For that reason, the increased inflow may only be of a temporary nature.
Building societies' mortgage rates are determined from time to time by the rate which they offer investors which, in turn, is determined by the rate which other deposit-taking and lending financial institution offer their investors. While the investment rate being offered by other competing institutions, in particular the associated banks, continues to remain at its present level and the demand for house purchase mortgage finance remains strong, I have no intention of approaching building societies on the question of their mortgage interest rates.
Comment on this
Arising out of the Minister's reply, am I correct in translating it to mean that people who have mortgages with building societies have no hope of a reduction in the interest rates?
Comment on this
It varies with the fluctuations in the bank rates as the Deputy is aware. They have come down. They went up slightly last year. They have to compete with the banks.
Comment on this
That is not so. They were slightly higher during one period of the Coalition Government's term in office.
Comment on this
Arising out of the Minister's reply, could he indicate to the House that, if our entry into the EMS, which hopefully will come sooner rather than later, does not produce the forecasted reduction in overall bank lending interest rates, as indicated in this House, he will take steps to subsidise interest rates as was done by the previous Government?