Barry Ward (Dún Laoghaire, Fine Gael)
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523. To ask the Minister for Finance if his attention has been drawn to cases whereby so called vulture funds are charging interest rates on mortgages, significantly above market rates; his views on the impact this is having on persons in this situation; the actions he will take to address these concerns; and if he will make a statement on the matter. [45770/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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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%.

While official interest rates set by the ECB generally influence the overall level of interest rates throughout the economy, 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, mortgage interest rates can vary across creditors and customers.

Central Bank of Ireland data indicates that average retail mortgage interest rates have declined over the past year. The most recent available data, which is for the end of June 2025, indicates that the average interest rate on outstanding mortgages held by the non-bank sector was 3.85% down 66 basis points from 4.51% a year earlier. For those entities in the non-bank sector which do not engage in new lending, the average was 4.05% down almost 1.5% from 5.53% a year earlier.

This reduction in average interest rates on mortgages held by regulated non-bank entities is welcome and it is expected that mortgage creditors will continue to keep their lending rates under review.

In relation to measures to support households, mortgage interest tax credit is available to assist eligible households who experienced an increase in mortgage interest in recent years. In addition, the Central Bank consumer protection framework seeks to ensure that all regulated entities are transparent and fair in all their dealings with borrowers and that borrowers are protected from the beginning to the end of the mortgage life cycle, including in the areas of mortgage switching and the adjustment of interest rates.

The industry has put in place measures to assist customers including the provision of an aligned industry-wide set of initial eligibility criteria to facilitate switching mortgages from a non-bank to a bank; and a website, entitled 'it's in your interest', to further encourage and assist the mortgage switching process.

As part of this initiative, certain lenders agreed initial eligibility criteria to assist borrowers who wished to switch their mortgage from a non-bank to a bank.