Paul Murphy (Dublin South West, RISE) | Oireachtas source

Last month was the 24th month in a row that saw inflation of more than 5%. Basic human requirements such as food and energy continue to rise even higher, while wages, benefits and pensions have seen only meagre increases, which means that people are suffering real cuts in income, week by week and month by month. For those with mortgages, this is an extra burden. There have been over ten interest rate increases over the last year. Average mortgage interest payments have increased by over 50% in the year to August 2023. In real terms, that means hundreds of euro extra per month, and thousands of euro extra per year, which people simply cannot afford.

People should be clear in that on the other side of the balance sheet are the banks who are making extraordinary and record profits. They have tripled their profits in the first six months of this year compared to what they got in the first six months of 2022. AIB, Bank of Ireland and PTSB have made more than €2 billion. They have over €50 billion on deposit at high interest rates with the ECB, and then they are very happy to pass on the increase in interest rates to mortgages.

The Government has the power to do this. It acted previously to prevent absolutely extortionate rates on short-term loans. It would have the power under this Bill to stipulate a rate of no more than 3% and to stop the rip-off of mortgage holders.

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