Press release for meeting next Thursday

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SVR Campaign calls for big turnout at public meeting on Thursday 7th May


The SVR Campaign is holding a meeting of mortgage holders to boost the campaign to get all banks to reduce their mortgage rates. Irish mortgage holders are paying on average 2% more than borrowers in other Eurozone countries. Even after AIB’s recent cut of ¼%, they are still charging up to 1.5% more than they are charging in Northern Ireland where they actually pay more interest on deposits.

When? Thursday 7th May

What time? 7.30 pm

Where? Ballsbridge Hotel – formerly Jury’s Hotel.

The purpose of the meeting is to discuss some ideas for effecting a reduction in the mortgage rate and to get expert political and legal analysis of those ideas.

· Calling for postponement of the sale of AIB until a normal mortgage market is in place

· A High Court challenge to the lenders’ right to increase mortgage rates without reference to the ECB rate

· A boycott of ancillary products such as credit cards and insurance products sold by the mortgage lenders

· Calling for a legal cap on mortgage rates of 3%

· Putting forward candidates in the general election

· Encouraging a new entrant into the Irish market



The meeting will be addressed by Sara Hogan, Michael McGrath TD, Brian Hayes MEP and Ross Maguire SC.

Sara Hogan said today “We need a big turnout at this meeting to show the banks, the Central Bank and the Government that we will no longer tolerate being overcharged by €300 a month. Don’t leave it to others to campaign on your behalf. If you have a variable rate mortgage, come to the meeting on Thursday.”

Further comment from:

Sara Hogan permanent tsb mortgage holder
Michael Hughes EBS mortgage holder

Brendan Burgess Campaign co-ordinator

Schedule of ideas to be discussed at the meeting

We have listed all the ideas which have been put forward. Inclusion of ideas on this list does not imply endorsement of these ideas by the Campaign Committee or by any of the invited speakers.

Postpone the sale of AIB until a normal mortgage market is in place.

A High Court challenge to the right of banks to vary interest rates at will.

A boycott of ancillary products such as credit cards and insurance products sold by the mortgage lenders.

Public protests outside the banks, outside the Central Bank, outside Dáil Éireann and outside events sponsored by mortgage lenders.

Put forward candidates in the general election

Direct Actions

· A complete mortgage payments strike

· Reduce payments unilaterally to a fair level – recalculate mortgage payments based on an interest rate of 2.5%

· Switch credit cards and insurance away from mortgage lenders

· Cancel direct debits – pay in branch by cash instead

Tax changes

· An increase in the bank levy

· Tax relief on mortgage interest paid in excess of €4,000 p.a.

Legislative Changes

· A cap of 3% on mortgage rates

· No legislative cap, but empower the Central Bank to set a cap

· Require lenders to make new products available to existing customers

Bring in a new entrant into the market

· Split EBS from AIB, free of trackers and mortgages in default

· Set up a new mutual building society

· Attract a foreign mutual into the market

· Make it more attractive to lend in the Irish market – less regulation and easier to enforce security

I would also add to the list above, long term fixed rates at low rates ,ie In France one can get fixed rates at very low rate for periods much longer than 5 or 10years.
The Banks here have it so easy ! A solution to this issue would be to make available a fixed rate at 3.5% for 10yrs , this would give Banks and Customers security in the future

A cap if applied must apply to all banks in particular Danske Bank.

Prof Honohan comment earlier in the week , ie that if we force a variable rate cut , we will end up with a market with no competition and no new entrants. Somebody might tell him, as is, there is no competition or any sign of new entrants to the market !!!!!!!!!!!!!!!!!!!

Bamocom said:

A solution to this issue would be to make available a fixed rate at 3.5% for 10yrs , this would give Banks and Customers security in the future

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I was led to believe that for fixed rates, the bank also borrows at a fixed rate for the term, so there is no risk to them from ECB rate changes. So what is the cost of 10 year money for an Irish bank? - I'd be amazed if they can't do a lot better than 3.5%