Denise Mitchell (Dublin Bay North, Sinn Fein)
Link to this: Individually | In context

521. To ask the Minister for Finance if he is satisfied with the failure of the main Irish banks to pass on successive ECB interest rate cuts to their mortgage customers at a time when these same banks are making record profits; if the Minister will outline the discussions he has had with these banks about passing on these rate cuts to variable rate customers; and if he will make a statement on the matter. [45748/25]

Tom Brabazon (Dublin Bay North, Fianna Fail)
Link to this: Individually | In context

529. To ask the Minister for Finance if he will publish a timeline for pass-through of ECB cuts to variable-rate customers. [45940/25]

Tom Brabazon (Dublin Bay North, Fianna Fail)
Link to this: Individually | In context

530. To ask the Minister for Finance if he is considering bringing forward a requirement for banks to publish transparent pass-through policies. [45941/25]

Cian O'Callaghan (Dublin Bay North, Social Democrats)
Link to this: Individually | In context

551. To ask the Minister for Finance if his Department has examined the introduction of a pass through protocol for variable mortgage customers who have not seen their rates change in line with European Central Bank cuts; and if he will make a statement on the matter. [46539/25]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context

I propose to take Questions Nos. 521, 529, 530 and 551 together.

The European Central Bank (ECB) increased interest rates over the course of 2022 and 2023 as it moved to combat excess price inflation. However, from mid-2024 the ECB has progressively reduced its main official lending rate to its current level of 2.15%.

In relation to tracker interest rate mortgages, the Central Bank of Ireland's Consumer Protection Code provides that a regulated entity must inform a consumer of a change in the interest rate no later than 10 business days after the regulated entity becomes aware of a change in the underlying rate being tracked.

In relation to variable rate mortgages, while official interest rates set by the ECB generally influence the level of interest rates, other economic and commercial factors such as the cost of wholesale and retail funds, risk levels, contractual terms, debtor status, operational costs, and market competition will also influence the level of retail rates charged by individual creditors. As a result, variable mortgage interest rates can vary across creditors and customers.

The Central Bank of Ireland's Consumer Protection Code requires all regulated mortgage creditors to explain to borrowers how their variable interest rates have been set, and to clearly identify the factors which may result in changes to variable interest rates.

Central Bank of Ireland data indicates that mortgage interest rates have declined over the past year. At the end of June, the average interest rate on outstanding mortgages held by banks was 3.44%, down from 3.66% a year earlier.

For the non-bank sector, the average interest rate on outstanding mortgages was 3.85% down over half a percent from 4.51% a year earlier.

For those entities in the non-bank sector, which do not engage in new lending, the average interest rate on outstanding mortgages at end-June 2025 was 4.05%, down almost one and a half percent from 5.53% a year earlier.

The reduction in average interest rates on mortgages held by regulated entities is welcome and, while I do not discuss individual interest rates adjustments with lenders, I expect they will continue to keep their lending rates under review.