Results 15,201-15,220 of 27,945 for speaker:Michael McGrath

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Permanent TSB and KBC Bank (28 Sep 2017)

Michael McGrath: Just to clarify, for the existing-----

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Permanent TSB and KBC Bank (28 Sep 2017)

Michael McGrath: So broadly speaking, the number is in the mid-forties on an SVR of 4.5%. In respect of the bank's managed variable rates, greater than 90% for existing customers to greater than 90% loan-to-value, LTV, is a rate of 4.3%. Is that also available to those in negative equity? Is it between 90% and 100% or is it in excess of 100% where one still gets a managed variable rate of 4.3%?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Permanent TSB and KBC Bank (28 Sep 2017)

Michael McGrath: So 45,000 customers or so, irrespective of their LTV, who are currently paying 4.3% are entitled to a reduction in their interest rate if they go about it?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Permanent TSB and KBC Bank (28 Sep 2017)

Michael McGrath: That is a lot of people. It might be a reduction of only 0.2% of 1% but depending on the principal balance of the mortgage, that could make a difference. Why does Mr. Masding think the uptake in general has been so poor? I think Mr. Masding said in the questionnaire that the bank wrote to people back in 2015.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Permanent TSB and KBC Bank (28 Sep 2017)

Michael McGrath: What is the process for a customer involved? Must they select a valuer from a panel provided by the bank? How does it work in practice?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Permanent TSB and KBC Bank (28 Sep 2017)

Michael McGrath: In 2015?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Permanent TSB and KBC Bank (28 Sep 2017)

Michael McGrath: The headline there is that one in three who were entitled to some reduction went ahead with it and received it but that two thirds of the banks' customers on a variable rate have not gone about it.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Permanent TSB and KBC Bank (28 Sep 2017)

Michael McGrath: And all of them are entitled to some reduction.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Permanent TSB and KBC Bank (28 Sep 2017)

Michael McGrath: It is quite extraordinary, is it not?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Permanent TSB and KBC Bank (28 Sep 2017)

Michael McGrath: It is hard to understand. In terms of the bank's rates for new business - the 1% discounted rates - people get that for one year. What do they then revert to? Do they revert to the rates for existing business?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Permanent TSB and KBC Bank (28 Sep 2017)

Michael McGrath: So new customers can get 2% cash back and a discounted MVR for one year. The witnesses referenced treating existing and new customers the same but the bank is not doing so in terms of its overall offering. An existing customer with Permanent TSB-----

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Permanent TSB and KBC Bank (28 Sep 2017)

Michael McGrath: The bank's existing customers are paying for it. They are paying for the 2% cash back and the discounted MVR for new customers. The banks must make up the money somewhere.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Permanent TSB and KBC Bank (28 Sep 2017)

Michael McGrath: Does Mr. Masding think it is fair?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Permanent TSB and KBC Bank (28 Sep 2017)

Michael McGrath: What impact would it have on the bank if legislation prohibited discrimination between new and existing customers and prohibited these cash back offers?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Permanent TSB and KBC Bank (28 Sep 2017)

Michael McGrath: What information is the bank obliged to provide to a customer who is looking at their options across different banks? Permanent TSB is offering cash back of 2% while another bank might have a lower interest rate but no cash back. What is the bank obliged to tell the customer by way of information in terms of how much they will be paying over the full duration of that mortgage so that they...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Permanent TSB and KBC Bank (28 Sep 2017)

Michael McGrath: That is what I am asking.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Permanent TSB and KBC Bank (28 Sep 2017)

Michael McGrath: Regarding the issue of fixed rates, again, Permanent TSB makes a distinction between the rates it charges new customers and the rates it charges existing customers. Is it correct that a new customer can lock in for a period of up to five years at the published rates? Is it therefore correct that a new customer with a mortgage fixed for five years with an LTV of less than 60% can avail of a...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Permanent TSB and KBC Bank (28 Sep 2017)

Michael McGrath: Yes, but I ask Mr. Masding to clarify for me that, as regards the treatment of an existing customer, LTV is irrelevant and that, irrespective of how low one's loan-to-value ratio is, the lowest fixed rate he or she can get with PTSB is 4.2%. Is that the case?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Permanent TSB and KBC Bank (28 Sep 2017)

Michael McGrath: However, a new customer, if he or she has a low LTV ratio of below 60%, can lock in at a five-year rate of 3.4%, which is 0.8% less.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Permanent TSB and KBC Bank (28 Sep 2017)

Michael McGrath: Again, that is a very stark illustration of the different treatment of new and existing customers. We are not talking about one year here. We are talking about a five-year period. A new customer can potentially get a rate up to 0.8% lower than that of an existing PTSB customer. That is completely unfair.