Mr. Brendan Burgess:

I do not believe it is the practice across Europe to force banks to treat existing customers the same as new customers. The UK is the market I probably know most about, as I keep an eye on what is happening there. It has standard variable rates and high standard variable rates but it has a very active switcher market. Where people are on variable rates in most eurozone countries and in the UK they can switch. The existing mortgage rates might be higher but there probably is no need to introduce legislation in those countries. The problem is quite specific to Ireland. Negative equity, mortgage arrears and restructured mortgages mean people cannot switch so existing customers must be treated fairly.

If mortgage rates decreased to 2.5% or 3% and people could switch, there would be less of a need for the legislation. Tomorrow, one of the vulture funds could decide it wanted to charge 10%. Mr. McNally knows what it is like for a bank to increase its rate to 6.5% over a few months while other banks are charging 3%. There is nothing a mortgage holder can do. Mr. McNally attended the permanent tsb AGM and complained about it.