Clare Daly (Dublin North, United Left)
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297. To ask the Minister for Finance his views on the Central Bank report published in May 2015 entitled Influences on Standard Variable Mortgage Pricing in Ireland, in the context that this report acknowledges that the banks currently continue to break contractual mortgage agreements they have with customers; and the action he will take regarding same. [37624/15]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy will be aware, I have taken steps to ensure that the banks provide options for mortgage holders to reduce their monthly repayments. Last May, I requested a report from the Central Bank on the topic which I subsequently published. This report was entitled 'Influences on Standard Variable Rate Pricing in Ireland'.

The Central Bank has informed me that in its research on mortgage interest rates, it has focussed mainly on four aspects. First, the cost and risk factors which have influenced, and are likely to continue to influence, mortgage rates. Second, the influence of the competitive environment on the rates charged. Third, the distribution of borrowers as to size of loan, date of borrowing and rate currently charged. Fourth, the transparency of the banks' policies for determining movements in rates, especially their "standard variable rates". This document summarises some of the findings of this research. Contrary to the premise of the question, this particular document does not refer to mortgage contracts.

With regard to my action in relation to mortgage holders more generally, as you know, I have taken steps to ensure that the banks provide options for mortgage holders to reduce their monthly repayments.  Last May I met with the six main mortgage lenders May and outlined my view that the standard variable rate being charged to Irish customers was too high. 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.

In September I concluded a series of follow up meetings with these banks and the reality is that the majority have put options in place to allow borrowers reduce their repayments. These options range from lower variable rates to new suites of variable rates based on loan to value and reductions in fixed rates.

While, it is a matter for each individual borrower to decide what suits their circumstances, I have encouraged borrowers to contact their bank to see what is available to them in their circumstances or consider moving to another bank, where possible, if the offer is not satisfactory.