Jimmy Harte (Labour)

Most people receive a letter from their mortgage company or bank outlining changes to their mortgage rates. My research shows there are almost 2 million residential units in the State, of which between 800,000 and 900,000 have a mortgage attached to them. Every interest rate change is notified to mortgage holders by post and those who hold two or three mortgages will receive two or three letters at a cost of 55 cent per letter in addition to the cost of stationery and time involved. We more or less own the banks and the notification of each mortgage interest rate change costs almost €500,000. Given the way the markets are now, the rate could change every month and, therefore, there could be 12 changes a year, which would cost up to €6 million.

I understand that under the terms and conditions of a mortgage, people must be informed by post but we have gone beyond that in this day and age. To save the taxpayer money, rate changes should be communicated to people by the media, e-mail or text message or by them contacting the bank themselves. I received a letter recently outlining my rate change and I am sure every other Member who has a mortgage received one. The letter does not last two minutes because one tears it up and throws it in the bin. The interest rate may increase from 4.5% to 4.7% and the cost of informing people is not justified. I asked Deputy Michael McCarthy to table a parliamentary question to the Minister for Finance. The Minister of State at the Department of Finance, Deputy Brian Hayes, may have a view on the matter because ultimately the mortgage holders will be paying for it and I do not think that is justified.