Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

Competition is working in the market now and it will continue to work as more institutions get involved. The Central Bank's statistical release of 11 December 2015 stated that mortgage interest rates generally declined during the third quarter of 2015. Variable principal dwelling house rates declined by 17 basis points over the second quarter, with corresponding buy-to-let rates falling by 14 basis points.

Aside from new competition to the market, switching represents the best way to foster competition between the lenders currently operating in the market. Central Bank research suggests that 21% of existing private dwelling home, PDH, variable rate mortgage customers could save by switching their provider and I encourage customers to ascertain whether options are available to them to reduce their payments by switching provider or product. I expect that if the financial institutions are convinced there is a threat they will lose existing customers, they will reduce the rates currently charged to customers.

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