Central Bank figures show mortgage rip off is fact - Doherty
Sinn Féin TD and Finance Spokesperson Pearse Doherty has said the figures released by the Central Bank today show that the Irish mortgage rip-off is a fact. The figures show that the interest rate on outstanding loans for house purchase is38 basis points above euro area rates while the rates on new loans is almost 1 percentage point higher in Ireland than the EU average.
Deputy Doherty said:
“I am glad these figures have thrown some light on the extent of the rip off of Irish mortgage holders. The immediate question that springs to mind is how many of the 110,000 family homes in mortgage distress are only in that situation because of these high rates.”
“The government needs to set out what it plans to do to correct the market. Unfortunately, like the mortgage crisis itself the government has no intention of intervening in the interests of society and the economy. I have drafted legislation which would give greater powers to the Financial Regulator to prevent unjustifiable increases at State supported banks. This would go some way to bringing some control over the sector.”
“Last year when the government brought forward legislation relating to the sale of the building society platform at Bank of Ireland I pointed out by selling it to a company that specialises in buy to let mortgages it was missing out on an opportunity to bring about greater competition.”
“The relationship of this government to the banking sector is like a servant and master. The banks command and the government obeys. In a situation where the people own two of the banks and part of another that is a ridiculous situation. The result of the government’s fear of the banks is a whole sale rip off of the Irish people.”