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

Many people who can afford to pay off their mortgages at an accelerated rate are deleveraging. There is a cohort who can do that. For many it is not an option. Rates are likely to remain low for tracker mortgages for the foreseeable future. Inevitably, however, they will begin to increase. As well as stress-testing the banks, the Department of Finance needs to stress-test mortgage holders and the impact on the economy of the likelihood of interest rates rising over the next two- to five-year horizon. Will the Minister at least give a commitment to examine the issue? The historically low interest rates are a key risk for the economy. They are great for those on tracker rates, many of whom can pay additional sums, but many are not even able to keep up with their repayments at the current rate, let alone face the prospect of an increase in the tracker rate. It is a risk facing the economy and the Department needs to examine it even though it may not crystallise until the medium term.

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