Ms Francesca McDonagh:

We have 45,000 owner-occupier customers on standard variable rate mortgages, not the number referred to by Deputy Michael McGrath. It is a little less but still too many. I do not agree that there is inertia. For most people, the mortgage payment each month is the largest outgoing from disposable income. It is the biggest bill and one of the most important payments people make to pay for the roof above their heads. It is also their largest investment.

I do not believe there is inertia. It is our responsibility to be proactive and clear in speaking to customers about alternatives. We include an insert with the annual statement. In addition, this year we have written a letter to customers to make them aware of the alternatives. That has been working. Last year we saw 7,750 accounts move from a variable to a fixed rate. That might have been in response to the letter but also to the advertising and communication we have undertaken consistently on the attractiveness of our fixed-rate offer. In the year to date we have seen the number increase. Some 7,500 customers have moved from a variable to a fixed-rate mortgage. That is because customers see the likelihood of an increase in interest rates that would impact on their variable rate mortgage payments. They see that that is looking more probable; therefore, the fixed rate offering is attractive.