Terence Flanagan (Dublin North East, Independent)
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263. To ask the Minister for Finance the actions being taken to reduce standard variable rates (details supplied); and if he will make a statement on the matter. [28451/15]

Michael McCarthy (Cork South West, Labour)
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268. To ask the Minister for Finance the action he is taking to ensure that Irish mortgage holders are not paying unfairly high interest rates on their mortgages; and if he will make a statement on the matter. [28534/15]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 263 and 268 together.

As the Deputies will be aware, I met with senior management of Ireland's six main mortgage lenders, including Permanent TSB, on 19th and 21st May to discuss the issue of mortgage interest rates. The meetings focused on the mortgage market and specifically the comparatively high standard variable rates currently being charged by the banks.

I 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.

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 SVR 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. The main banks have since announced a range of new products offering customers lower monthly mortgage 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.

In relation to switching, I understand that the Competition and Consumer Protection Commission is planning to provide more information to consumers to encourage switching. I expect that if financial institutions are convinced that there is a threat that they will lose these customers, they will reduce the rates that they currently charge existing customers. The CCPC website is a valuable source of information on the rates charged by various financial institutions.

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.

A review of what progress has been made is now taking place. The main lenders have initiated new measures ranging from lower Standard Variable Rates to new loan to value products and fixed rate products. These new offerings could result in monthly savings for mortgage customers and I urge customers to see if there is an option available which would suit their circumstances and also save them money on their repayments. The Central Bank is also continuing to conduct research in this area following its earlier report.

As I have previously made clear, a follow up set of meetings with each of the six banks will take place in September in advance of the Budget.