Martin Heydon (Kildare South, Fine Gael)
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Question 95: To ask the Minister for Finance the position regarding a person (details supplied) in County Kildare who wishes to transfer their mortgage from Permanent TSB to AIB due to a substantially lower interest rate, but has been advised that he cannot do this; the reason there is such difference in the interest rates in two State-owned banks; and if he will make a statement on the matter. [15825/12]

Michael Noonan (Limerick City, Fine Gael)
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It is not appropriate for me, as Minister for Finance, to comment on or become involved in the detailed mortgage position of an individual mortgage holder. However, I can confirm to the Deputy that the lending institutions in Ireland, including those in which the State has a significant shareholding, are independent commercial entities. Ultimately, the pricing of financial products, including standard variable mortgage interest rates, is a commercial decision for the management team and board of each lending institution, having due regard to their customers and the impact on profitability, particularly where the cost of funding to each lending institution, including deposit pricing, is under pressure.

It is a commercial decision for each lender to decide what loans they will agree to grant or to have switched to them.