Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

Táthar ag dréim go n-ardóidh An Banc Ceannais Eorpach rátaí úis don ochtú uair ó a bhí mí Iúil ann. Méadóidh sé seo costaisí morgáiste do na céadta mílte de teaghlaigh arís. Tá sé in am faoiseamh úis morgáiste a thabhairt isteach le tacú leis na teaghlaigh seo.

Today, the European Central Bank, ECB, is expected to increase interests rates for the eighth time since July of last year. For workers and families who must deal with the rising costs of food and spiralling energy bills, this is another massive blow to their incomes. In April, the Central Bank estimated that for one in five mortgage holders in this State, the cost of servicing a mortgage has risen by more than €4,800. It stated that more than half of mortgage holders have seen their annual costs rise by more than €1,200. Those estimates were made before the ECB's rate increase in May and the further hike expected later today.

Some 250,000 households are on tracker rates and have had to bear the full brunt of these interest rate hikes. Those on variable rates have also been affected. The mortgages of 85,000 households were sold to vulture funds without their consent. They will remember the words and promises of the Taoiseach and the Minister for Finance, Deputy Michael McGrath, who told them that they would be no worse off if their mortgages were sold by the banks. I said at the time that was nonsense and that the vulture funds would not hesitate to hike interest rates more aggressively than the retail banks. Unfortunately, that is exactly what has come to pass. Vulture funds are now charging interest rates well in excess of those being charged by the banks. Many people are now being charged interest rates of over 8%. The scale of these interest hikes is crippling many families.

A single parent contacted my party leader recently. Her monthly mortgage repayments have risen by €700 per month. That is an increase of €8,400 per year. She fears losing her home or going into arrears. She says she sees no future here for herself or her child. A taxi driver also contacted us. His mortgage was sold to a vulture fund and he has seen his monthly mortgage repayments rise by €400, an increase of almost €5,000 per year. That is before today's increase. He said that with more to come, he cannot see how he will sustain things. With his wife unable to work and a child with special needs, he says they are living day to day and week to week.

These stories are just a snapshot of what is happening in wider society. Many people and families are feeling the brunt of eight interest hikes. Month after month and week after week, they are seeing the pressure on their incomes. Action must be taken to support these families. We have been raising the issue with the Government for months and asking it to do something but the members of the Government have their heads in the sand. The Government has so far refused to take any action despite the fact that families are seeing bills and mortgage repayments increase by thousands of euro. I have been calling on the Government to introduce temporary and targeted mortgage interest relief to support these households. We have brought forward credible solutions and proposals that would offer a helping hand to those whose mortgage interest rates have spiralled by supporting households with 30% of the rising mortgage costs, benefiting households with up to €1,500 per annum, with appropriate limits and caps.

Hundreds of thousands of households are anticipating another letter in the coming days telling them their mortgage repayments have increased again. It will be the eighth such letter that many of these families have received in less than a year. Is it not time for those in government to get their heads out of the sand and take action to support families who are trying to keep a roof over their heads? Will the Government take action? Will it introduce mortgage interest relief to support these struggling households or is the Government's message the same as it has been in recent months, that is, people are on their own?

See this speech in context