Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

The directors touched on the interest rate issue in their opening statements. It is to be welcomed that the standard variable rate being charged has come down. The bank was once a significant outlier in this regard and was charging customers way in excess of what the other banks were charging. I feel very sorry for customers on a variable rate paying 4% to 4.5% when someone on a tracker is only paying 1.5% or 1.75%. That makes an enormous difference to the monthly repayment. Where is it going for variable rate customers over the next 12 months? The link between European Central Bank rates and variable rates has long since been broken. The bank is obviously making decisions based on the cost of funding. Mr. MacSharry outlined the blended funding structure the bank has in place. Where will that go for those mortgage holders who are being charged well in excess of 4% for a variable mortgage?