Robert Dowds (Dublin Mid West, Labour)
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85. To ask the Minister for Finance further to Parliamentary Question No. 324 of 9 June 2015, if it is his understanding that the new mortgage products, leading to lower payments for borrowers, which he has received a commitment from the banks to roll-out in July 2015, will be available to all variable rate mortgage holders, including investors and / or those holding buy-to-let mortgages; and if he will make a statement on the matter. [25445/15]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware, I met with senior management of Ireland's six main mortgage providers in May. The meetings focused on the mortgage market and specifically the comparatively high standard variable rates currently being charged by the banks, with a specific focus on Private Dwelling House (PDH) customers.

The banks agreed to review their rates and products and, by the beginning of July, to have simple options to reduce monthly mortgage payments for Standard Variable Rates (SVRs) customers in respect of PDH. Some of the potential products include lower standard variable rates for existing and new customers, competitive fixed rate products and lower variable rates taking account of loan to value for new and existing customers.

The position of home owners who are in negative equity was also discussed and assurances were sought and received that these homeowners will be able to avail of options to reduce their monthly repayments.

In addition to the issue of rates I also 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.

While no commitment was received in relation to BTLs, it is accepted that additional competition will have the effect of reducing prices to consumers on all products, including mortgage interest rates for Principal Dwelling Houses and Buy-to-Let mortgages. For example, 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 their business to another bank should look into their options to do so. The Competition and Consumer Protection Commission website at has useful information on comparing bank products 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.

Officials in my Department will review progress over the coming weeks and a follow up set of meetings with each of the six banks will take place in September in advance of the Budget.