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O’ROURKE URGES GOVERNMENT TO ACT ON MORTGAGE RATES

Frank O’Rourke TD has again called for Government action on unacceptably high mortgage rates

Frank said “Irish Mortgage rates are noticeably higher than the average European rates and I’m calling on the Government to enlist the support of the EU. Irish banks are charging their customers double the EU mortgage rates. At a time when interest rates across the EU are falling, Irish Banks have increased the cost of taking out a mortgage.”

                                Frank O’Rourke TD

“My understanding from the Central Bank is that Irish mortgage rates are the second most expensive in the EU. The average interest rate on a new mortgage is around 3.pc compared with the average rate for the euro area of 1.7pc. To put this in real money terms, the average first-time buyer is paying an extra €154 a month for their mortgage, based on a loan of €225,000 paid back over 30 years. Parents and working families are in much need of this extra income to cater for their day to day expenses. In addition, as Brexit brings uncertainties, having this extra €154 per months available for the local economy will bring benefits to local businesses. “

“With our spokesperson on Finance, Michael McGrath TD, I continue to put pressure on the Government to deal with this inequality. I have repeatedly called on the Government to address the rising cost of living issues; such as Mortgage Rates and Insurance rates and they must get support from the EU to deal with this imbalance.”

“We also have a situation, where as the Taoiseach says our mortgage lending rules are ‘very tough’ when he cited situations where couples are trying to save for a deposit to buy a house but have to pay as much €2,000 in rent. We need to provide support to assist young couple buy their home.“

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O’ROURKE URGES ACTION ON MORTGAGE RATES

Frank O’Rourke TD has stated that fespite numerous Government pledges to tackle the issue of high variable mortgage rates, variable rates here are still nearly double the Euro area average

According to the recent Central Bank figures, the average interest rate on new mortgages in September of this year stood at 3.31%; this is nearly double the equivalent rate across the Euro area, which stood at 1.86%.

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O’ROURKE SAYS IRISH MORTGAGE RATES HIGHER THAN EU

Mortgage Rates in Ireland remain dramatically out of line with rates charged elsewhere in Europe, according to Fianna Fáil’s Deputy Finance Spokesperson, Frank O’Rourke

Frank stated, “Recent Retail Interest Rate statistics published by the Central Bank show that mortgages rates are falling in Ireland. However, they are not falling at the same pace that deposit rates are falling”

“These statistics published by the Central Bank recently show that despite modest reductions in mortgage rates, Irish mortgage holders are continuing to pay dramatically more than consumers elsewhere in Europe.”

“For example, in Ireland, the interest rate on all new mortgages, fixed and variable, stood at 3.3% in June compared to a Euro area rate of 1.83%. This means that a borrower with a mortgage of €200,000 is paying €250 per month more than they would be paying in the average Euro area country. That is €250 a month, each and every month, which could be spent by families on other household necessities. There has yet to be a credible explanation for such a dramatic difference in the rates charges and it is depriving our economy of much needed money which could be spent more productively in our economy”

“In May 2016, a Fianna Fáil Bill designed to give the Central Bank powers to tackle excessive variable mortgage rates passed second stage in the Dáil. The progress of the Bill through the legislative process has been tortuous and painfully slow. Despite not opposing the Bill at second stage, it is abundantly clear the Government does not want the Bill to become law.”

“As I have said in the Dail on a number of occasions, we must focus on reducing the cost of living as well as reducing the burden of taxation. There is little point in reducing tax rates, if the banks are continuing to charge excessively high variable mortgage rates or insurance companies are continuing to increase their rates, taking back a multiple of any reduction in taxation.”

“However, key elements of our Bill on mortgage rates will proceed when the Dail returns next month which will be of help in relation to securing fairer mortgage rates in the Irish market,” concluded Deputy O’Rourke.