Banks accused of keeping variable rates ‘artificially’ high

Central Bank figures show growth in mortgage lending driven by fixed-rate mortgages

Mortgage lending here increased in net terms by €30 million in August and by €1.1 billion year on year, or 1.5 per cent.

Mortgage lending here increased in net terms by €30 million in August and by €1.1 billion year on year, or 1.5 per cent.

Irish banks have been accused of keeping variable mortgage rates “artificially” high to boost profitability.

Consumer advocate Brendan Burgess said the banking system here was “out of kilter” with the rest of Europe in offering new customers more competitive fixed-rate mortgages when the forecast was for interest rates to stay low in the short to medium term. Typically banks charge customers a premium for locking in a low rate.

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