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Doherty calls for legislation to cap variable interest mortgage rate

18 October, 2011 - by Pearse Doherty TD


Sinn Féin Finance Spokesperson Pearse Doherty has called on the Taoiseach Enda Kenny to introduce legislation to put a cap on variable mortgage interest rate increases.

Deputy Doherty was speaking after the Irish Banking Federation rejected a demand from Financial Regulator Matthew Elderfield to prevent banks from setting their own variable mortgage interest rates.

Deputy Doherty said, “Interest rate hikes from the banks are putting enormous strain on already overburdened households.

“In the Programme for Government Fine Gael and Labour promised to ensure that domestic banks share the burden of European Central Bank interest rate hikes. That has yet to happen.

“We now have a situation where the banks are rejecting a demand from the Financial Regulator to halt interest rate hikes. This should not be allowed to continue.

“I am calling on the government to now legislate to cap the rate on variable interest rate mortgages to ensure that the 200,000 variable rate mortgage holders are not further penalised by the banks for the mistakes of others.” ENDS

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