Variable mortgage interest rates
The Taoiseach agrees that banks’ variable mortgage rates are unfairly high relative to their funding costs and says the Government is engaging with the Central Bank and banks.
Deputy Mathews is very good at raising these matters. He will be aware that the Minister for Finance has met the Governor of the Central Bank. Obviously, he has yet to meet the banks themselves in respect of their variable mortgage interest rates. It is not fair, it is not equitable and it is not just.
Comment on this
It is wrong that banks are continuing to charge interest to variable-rate mortgage holders at rates that are very much above the rates at which they are borrowing the money themselves. We have made this case. The Deputy is aware from his long experience that the Government does not want to be in the position of setting interest rates. Clearly, the engagement with the banks goes on in respect of the 300,000 people in question.