European Commission: Allow banks set their own mortgage rates

http://www.rte.ie/news/2015/0707/713298-banks/

A draft report by the European Commission, seen by RTÉ News, has stated that it is important to allow Irish banks sufficient leeway in setting mortgage interest rates.

The report is the third review of the Irish economy post the bailout programme and was carried out from 27 April to 1 May this year.

The report found that standard mortgage rates in Ireland are relatively high due to credit risks of non-performing loans and legacy assets.

However, it states that continued pressure on the banks to cut rates may undermine financial sector stability by reducing bank profitability and impact future privatisation prospects.

It also says it could have negative implications for market competition by discouraging new entrants. It states it is important efforts to promote bank transparency in this area are welcome.

Number of repossessions 'low'

On the issue of repossessions it notes that voluntary engagement between lenders and debtors has improved and points to the new Government measures to support those in arrears and boost the low use of the insolvency process.

However it says that the legal system slows the resolution process of debts with numerous adjournments and a large number of pending cases.

Overall, it says while the banks have stepped up their efforts, the overall number of repossessions is low with the majority voluntarily surrendered.

It states a surge in repossessions is not expected but a steady rise may continue due to the amount of protracted arrears cases.

It suggests careful supervision of the banks resolution efforts and also proposes efforts to make legal proceedings more efficient.

I wonder if they spoke to any mortgage holders when compiling the report. It looks like a rehash of the Central Bank's deeply flawed report.

Brendan

So the European Commission agrees that Irish banks should overcharge their customers.

First we were bounced into a bailout.

Now EU encouraging overcharging of the same people who actually paid the bondholders.

BrExit, GrExit, IrishExit ?

And M. Noonan on RTE saying the all the banks have made changes to their rates!

M. Noonan tells us that rates are at their low point and now is the time to fix.

He recommends taking the fixed rate offers from the banks

eg BOI 3.6% fix for 2 years.

Do we have any politicians standing up for the people of Ireland?

Did you hear Michael Noonan response, claims all 6 lenders have moved and was pleased with their response.

He claims it was a great time to fix your mortgage as US interest rates are rising. Dont really see the relevance of US rates to our rates

I dont see Mr Noonan being much of a friend of the Fair Mortage rate campaign

To Brendan Burgess,

Great to see at least one person with their eye on the ball, the EU report is a cut and paste of a highly flawed recent CBI report. I do not believe that the left hand and right hand of the EU Commission know what each other limb is doing. It appears to be somewhat schizophrenic. I know that the Commission are currently investigating the lack of appropriate consumer protection legislation within the Irish State, coupled with the lack of enforcement action by CBI against offending financial institutions.

It's a strange coincidence that the Central Bank of Ireland is suddenly flexing it's enforcement arm. INBS and now PTSB. Running scared boys?