Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

I move:

That Dáil Éireann:

recognises that:

— the cost-of-living crisis is exacting enormous pressure on household finances; and

— mortgage costs are among households’ largest monthly expense, with the unprecedented and sustained rise in interest rates resulting in significant financial pressure for households;

notes that:

— on 20th September the European Central Bank will increase its main lending rate for the tenth time since July 2022, from 0 to 4.5 per cent;

— the Central Bank estimated that, prior to this most recent rate rise, 20 per cent of households would see their annual mortgage repayments increase by more than €3,000, with a further 20 per cent of households seeing their annual mortgage costs increase by more than €5,700;

— according to the Central Statistics Office, mortgage interest costs rose by 51.3 per cent in the 12 months to August;

— at end of June, over 78,000 mortgage accounts were held by vulture funds, with a cohort of these mortgage holders having seen their interest rate rise to as high as 10 per cent;

— a wider cohort of mortgage borrowers, including first-time buyers, face or are likely to face further increased mortgage repayments; and

— the retail banking sector is estimated to record combined operating profits in excess of €5.1 billion, an increase of 97 per cent compared to 2022;

further notes that:

— the Government has refused to introduce temporary and targeted mortgage interest relief to support households struggling with rising mortgage costs;

— Fine Gael and Fianna Fáil supported the sale of mortgage loans to vulture funds without the consent of mortgage-holders; and

— the Government reduced the banking levy in 2022; and

calls on the Government to:

— introduce targeted and temporary mortgage interest relief to support homeowners facing significant increases in their mortgage costs;

— provide mortgage interest relief, applicable to principal private residences, equivalent to 30 per cent of increased interest costs relative to June 2022, with a maximum benefit per household of €1,500 per annum;

— increase the banking levy and use the proceeds of that increase to support households through the introduction of temporary and targeted mortgage interest relief; and

— develop a clear plan to facilitate the reintegration of mortgage holders with loans held by vulture funds into the mainstream mortgage market.

Mar is eol don Leas-Cheann Comhairle, le bliain anuas, tá méadú suntasach tagtha ar rátaí morgáiste d'oibrithe agus do theaghlaigh ar fud an Stáit. Mar is eol dúinn, le 15 mhí anois mhéadaigh an Banc Ceannais Eorpach a phríomhráta úis deich n-uaire. Tá a fhios againn go léir cén fáth go bhfuil seo déanta. Ní féidir linn neamhaird a dhéanamh den tionchar atá aige seo ar oibrithe, ar teaghlaigh agus ar daoine amuigh ansin.

Roimh an ardú rátaí is deireanaí, measadh go n-ardódh costais bhliantúla morgáiste do 20% de theaghlaigh le breis is €5,700. Do 20% eile, chuaigh an costas a baineann le déileáil lena gcuid morgáistí suas €3,000. Tá rátaí úis anois chomh hard le 10% i measc na teaghlaigh ina raibh a gcuid iasachtaí díolta ag na creach-chistí, cinneadh a ghlacadh cúpla bliain ó shin le tacaíocht ó Fhine Gael agus ó Fhianna Fáil. Ta tacaíocht de dhíth ar na teaghlaigh atá ag streachailt, agus is féidir an tacaíocht sin a thabhairt dóibh. Tá an t-am anois le haghaidh a thabhairt ar an pholasaí agus ar ghníomh a dhéanamh an polasaí agus an plean atá ag Sinn Féin le faoiseamh úis morgáiste sealadach a thabhairt isteach.

For more than a year, households have been struggling with a cost-of-living crisis. For many households, their single biggest expense is servicing their mortgage and keeping a roof over their head. In the past 15 months, the European Central Bank, ECB, has increased its key interest rate ten times. We all know the reasons for this but we cannot ignore the impact this is having on workers, families and households across the State.

In the past 15 months, mortgage interest costs have increased by a massive 54%. Before the most recent interest rate hike this month, the Central Bank estimated that one in five households, which is 20% of all households, would see their annual mortgage costs increase by more than €5,700 compared to last year. It estimated that a further one in three households would see their annual mortgage costs rise by over €3,000 and a further one in three households would see their annual mortgage costs rise by over €1,500. This is a massive income shock for middle and low-income households across this State.

We know that over 80,000 households have had their mortgages sold off to vulture funds without their consent - sales that were supported at the time by Fine Gael and Fianna Fáil through the blocking of my legislation. These households were told by the Taoiseach that they would be no worse off once their mortgages were sold. As I warned at the time, the sale of mortgages to vulture funds would leave these households exposed to higher interest rates. This, unfortunately, has come to pass. These mortgage prisoners are now paying interest rates as high as 10%.

On 4 August, I called on the Minister for Finance to convene a meeting with the Central Bank and the banking sector to chart a path for these mortgage holders to return to the mainstream mortgage market. The Minister convened that meeting on 31 August. However, I have serious reservations about the effectiveness of the measures that were announced. These mortgages should never have been sold in the first place. What is clear is that struggling households need action and they need it now.

For months, Sinn Féin has called for the Government to act, get its head out of the sand and introduce targeted and temporary mortgage interest relief. That is exactly what this motion calls for. This motion calls for Sinn Féin’s plan to support these struggling mortgage holders to be introduced. Our plan would support households with 30% of their increased interest costs since June 2022, capped at a maximum benefit of €1,500 for each household that qualifies over the course of the scheme. This plan would not insulate households from the full impact of rising interest rates but it would provide relief and support to those facing what is a massive income shock.

Our plan is affordable and, more importantly, it is necessary. We are now in a situation where the retail banking sector is expected to make combined operating profits of more than €5 billion this year. Its profits are expected to double compared to last year. In this context, the banking levy should be increased and the proceeds could and should be used to support struggling households. This is a sensible and necessary proposal that can be delivered and deserves meaningful support from all sections of this House. I am disappointed but not surprised that the Government continues to ignore the plight of mortgage holders and will vote against this motion. When will the Minister for Finance understand what is happening out there and the fact that he needs to act? He has delayed for far too long.

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