Michael McGrath (Cork South Central, Fianna Fail)
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Many of the reductions announced in standard variable rate mortgage rates over the past 12 months are new offers for new customers. The reality is that there are tens of thousands of existing mortgage holders still paying between 4% and 4.5% on a standard variable rate product. In some cases, it is closer to 5%. We do not have an active mortgage switcher market. Even if there were one in place, many mortgage holders are trapped because of negative equity or because their financial situation has changed and, accordingly, they would not qualify for a new mortgage. It is fundamentally unfair that the rate reductions given to new customers are not extended to the existing customer base across the banking system.

Professor Lane is the new Governor and I hope this is an issue he will tackle. I note his comment that he is not there to run the business of regulated entities. However, this is a clear case of discrimination against existing customers vis-à-visthe offers of which new customers can avail and it is simply not fair. I put the case to Professor Lane and challenge him on what he can do to address it.