Joan Burton (Dublin West, Labour)

Is the Minister aware of the considerable stress experienced by young home purchasers and people intending to buy a home? Is he aware that the European Central Bank has indicated it intends to allow interest rates to rise on a quarterly basis by as much as 0.25%, which would mean an increase of 0.5% for each six months in the coming year? Does he agree that the impact of that on most young home owners with mortgages of between €300,000 and €500,000 will mean an extra monthly repayment of between €100 and €150, depending on the term of the mortgage?

Does the Minister appreciate the stress suffered by many people who are borrowed up to the gills with house mortgages, credit card loans and loans for furniture for their new homes? The stress is caused by the fact that they have no safety cushion to enable them to absorb huge increases in mortgage payments. Does he recognise that if the mortgage rate continues to rise the amount of cash that can be made available for mortgages will be reduced by €100,000 for first-time buyers? Many first-time buyers obtain loans of €300,000 but if interest rates keep rising they will be able to borrow less. Does the Minister heed the warning by Mr. Jean-Claude Trichet of the European Central Bank to the Irish Government about rate increases?

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