Results 4,041-4,060 of 9,147 for speaker:Jim O'Callaghan
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Issues: Discussion (14 Sep 2022)
Jim O'Callaghan: I welcome our guests before the committee. I congratulate Mr. Kelly on his interim appointment. By the way, when are we going to have the white smoke of a permanent appointment?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Issues: Discussion (14 Sep 2022)
Jim O'Callaghan: Mr. Kelly has probably been unlucky enough to find himself in the position of being interim CEO at the time we are having this meeting. If it had been on a different date he might have missed it. I refer to the ongoing investigation by the Central Bank into Bank of Ireland and the tracker mortgage scandal. Where are we on that? Bank of Ireland is the last bank standing. When does Mr....
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Issues: Discussion (14 Sep 2022)
Jim O'Callaghan: Previously, Bank of Ireland had set aside €90 million. Has there been any increase on that or is it still the figure?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Issues: Discussion (14 Sep 2022)
Jim O'Callaghan: Was that €33 million on top of the €90 million?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Issues: Discussion (14 Sep 2022)
Jim O'Callaghan: So we are talking about €123 million in total provision. To talk about the Bank of Ireland variable interest rate, it is fair to say that, at 4.5%, it is unusually high for a loan-to-value ratio of 90%. One of the concerns that we have as a committee is that if someone is on a fixed rate and the fixed-rate term comes to an end, that person automatically goes onto the variable rate of...
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Issues: Discussion (14 Sep 2022)
Jim O'Callaghan: Those who do not engage, and there must be some of them, automatically go onto the variable rate of 4.5%.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Issues: Discussion (14 Sep 2022)
Jim O'Callaghan: Instead of automatically putting them onto that high variable rate, why does the bank not fix them again for the term they had fixed previously?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Issues: Discussion (14 Sep 2022)
Jim O'Callaghan: What is the justification for Bank of Ireland charging a variable interest rate of 4.5% when we look at the other participants in the market, none of which charge more than 4%?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Issues: Discussion (14 Sep 2022)
Jim O'Callaghan: Mr. Kelly mentioned earlier that 10% of mortgage customers have variable rates. Is that correct?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Issues: Discussion (14 Sep 2022)
Jim O'Callaghan: In terms of the recent announcement by the ECB, I am conscious that Mr. Kelly is not going to comment as to whether or not that is going to be passed on to customers, and hopefully it will not be. However, if the bank is charging 4.5% as a variable rate at present, I would have thought it would be astonishing if it increased that further in light of the recent changes from the ECB.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Issues: Discussion (14 Sep 2022)
Jim O'Callaghan: One of the unusual things about rates is that when market rates are expected to rise, as they are now, we generally expect the fixed rates to be higher than the variable rate. Does Mr. Kelly agree with me on that?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Issues: Discussion (14 Sep 2022)
Jim O'Callaghan: The competitiveness of Bank of Ireland's fixed rates makes it all the more surprising that it charges a variable rate of 4.5%. Can Mr. Kelly understand the point that is being made?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Issues: Discussion (14 Sep 2022)
Jim O'Callaghan: Does Mr. Kelly think the Bank of Ireland offer of cashback to prospective customers plays a significant part in attracting business in the mortgage sector?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Issues: Discussion (14 Sep 2022)
Jim O'Callaghan: If we look at Bank of Ireland's five-year rates, it offers a fixed rate high-value mortgage rate at 2.5% with no cashback and then the regular five-year fixed rate is at 3% but with €9,000 cashback. I can understand the immediate attraction of the €9,000 cashback but will the bank inform a customer of how much extra they are going to be paying on their mortgage if they avail of...
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Issues: Discussion (14 Sep 2022)
Jim O'Callaghan: In the letter, is it spelled out comparatively so the prospective customer will be informed as to the cost if they go for the high-value mortgage and the cost if they go for the cashback option?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Issues: Discussion (14 Sep 2022)
Jim O'Callaghan: I am not asking Mr. Kelly to commit to this but I think it would be more helpful for customers if they were apprised at an early stage in the correspondence as to the extra amount they are paying if they go for the cashback option. That is a comment and he does not need to respond to it.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Issues: Discussion (14 Sep 2022)
Jim O'Callaghan: Is it correct that Bank of Ireland has agreed to buy the entire performing mortgage book from KBC.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Issues: Discussion (14 Sep 2022)
Jim O'Callaghan: Of course, KBC customers did not get cashback but they will face the higher mortgage rates that Bank of Ireland charges existing customers. Is that correct?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Issues: Discussion (14 Sep 2022)
Jim O'Callaghan: But they were subject to the terms and conditions that they had with KBC. Is that correct?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Issues: Discussion (14 Sep 2022)
Jim O'Callaghan: That allows the new lender, namely, Bank of Ireland to increase the rate. Is that correct?