Shane Cassells (Meath West, Fianna Fail)
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157. To ask the Minister for Finance to address the serious issue facing variable rate mortgages holders and to encourage the banks to pass interest rate cuts onto the mortgage holders. [6115/16]

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 was subsequently published. I also met with the six main mortgage lenders in 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 many 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.

I therefore encourage 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. I understand that this is not possible in all circumstances.

The Competition and Consumer Protection Commission (CCPC) website www.consumerhelp.ie is a valuable source of information on the rates charged by various financial institutions. In addition, the CCPC are currently running a mortgage switching campaign and have a mortgage switching tool on their website which should allow borrowers compare rates charged across institutions. Furthermore, I am pleased to note that some lenders offer incentives to borrowers switching mortgage provider. These initiatives illustrate the increasing competitive dynamics in the market which should benefit all borrowers.