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Temporary and targeted mortgage interest relief needed as banks hike interest rates – Pearse Doherty TD

30 June, 2023 - by Pearse Doherty TD

Sinn Féin spokesperson on Finance, Pearse Doherty TD, has again called for the Government to introduce temporary and targeted mortgage interest relief to support households.

The Donegal TD was speaking as AIB announced it was increasing fixed and variable rates for mortgage holders.

Speaking today, Teachta Doherty said:

“Today AIB has announced it is increasing its fixed rate by up to 0.7 percentage points and its standard variable rate by 0.65 percentage points.

“This will result in a significant increase in mortgage costs for borrowers, including those who will roll off their fixed rate in the coming months.

“The decision by AIB to hike rates only for second-hand homes is questionable, given the high price of new homes is out of reach for so many trying to buy their first home.

“We are likely to see more rate hikes in the coming months as a result of the ECB hiking its key interest rate eight times in less than a year.

“As so many households struggle with rising mortgage costs while in the grip of a wider cost of living crisis, temporary and targeted mortgage interest relief should be introduced to support them with a portion of these rising costs.

“We know that there tens of thousands of households whose loans are held by vulture funds who have seen massive hikes in the interest they are charged, with some now facing rates as high as 8 percent.

“The State can and should offer a helping hand.

“Sinn Féin have proposed a mortgage interest support scheme that would provide relief on 30 percent of the increased interest costs households have faced since July of last year.

“This support, as so many households face a massive income shock, would provide real relief to households.

“With further rate hikes likely in the coming months, it is time to introduce this targeted and temporary mortgage interest relief without delay.”

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