Terence Flanagan (Dublin North East, Independent)
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113. To ask the Minister for Finance his plans to encourage competition in the banking sector and to drive down variable mortgage interest rates; and if he will make a statement on the matter. [24521/15]

Michael Noonan (Limerick City, Fine Gael)
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As you know, I met with senior management of Ireland's six main mortgage providers in May and outlined my view, that Standard Variable Rates being charged in the Irish market are too high.  There was agreement from all lenders that customers should have access to more competitive mortgage products as per my recommendation.

In addition, I outlined the need for greater competition in the market and the need for a more active and well-resourced campaign by the individual banks. This should focus on promoting awareness of their best offering and how easy it is for customers to take up new products and switch between different institutions if they wish to avail of better rates.

In advance of these meetings, I asked the Central Bank to prepare a report on the issue. This report on the influences on standard variable rate pricing in Ireland was submitted to the Department of Finance last month and has been published on both the Department of Finance and the Central Bank websites.  

It is universally accepted that additional competition will have the effect of reducing prices to consumers, which in the mortgage sector means reducing the SVR. Lower rates are available for many standard variable mortgage customers if they switch lender. The banks must be convinced that they are at risk of losing customers if they persist with SVRs that are higher than the rate their customers could get elsewhere. People who are in a position to move mortgages should look into their options to do so. The Competition and Consumer Protection Commission website at has useful information on mortgages and I understand that the CCPC is planning to provide better information to encourage mortgage switching. I fully accept that this is not an option for everyone but I would encourage people to take the time to explore it.

The Government  made a commitment in the Statement of Government priorities 2014 to 2016 to applying downward pressure on mortgage rates by increasing and supporting competition in the market and it will continue to work to fulfil that commitment.