Minister for Finance to call in banks

Brendan Burgess

Brendan Burgess

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This is what the Minister said in his spring statement on Tuesday

Access to credit for households is as important as access to credit to businesses. The mortgage interest’s rates being charged by Banks in Ireland have not been reduced in line with the rate reductions by the ECB. I recently discussed this issue with the Central Bank Governor and he updated me on the ongoing work that the Central Bank is carrying out on this issue. The Central Bank will report back to me in the coming weeks and I intend, during the month of May, to initiate discussions with the 6 main lenders in Irish Banking on the issue and look forward to hearing their plans for reducing interest rates.

Who are the 6 main lenders
AIB/EBS
BoI
Ulster Bank
Permanent tsb
KBC

Maybe he is counting AIB and EBS as two?
 
If AIB lower rates presumably the other will have to react for commercial reasons. There are 300K VR customers - would be interesting to know how many of these actually can move (i.e. are in positive equity and not in arrears)
 
There will be others, like me, who are have positive equity and are not in arrears but who still cannot switch lender. If Noonan was worth his salt he would demand that AIB cut SVR by at least 1% and to actively chase switchers, and the others would fall into line.
 
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The Minister was on Seán O'Rourke yesterday and said

I will be meeting Patrick Honohan - he has almost completed the bit of work he was doing and he will be giving it to me, I would imagine, towards the end of next week. Then I will invite in the Chairmen and Chief Executives of the main lenders for a factual discussion and get them to explain why they have a different view to the Central Bank. The Central Bank view, without putting figures on it, is that the margin is too wide now. The difference between the cost of money and the rate they are lending it at is no longer justified.
 
Wow BB that very strong from Kenny, banks called the bluff but Kenny is hitting right back at them.
 
Hi Brendan, Will Dilosk trading as ICS mortgages be called in to answer about the SVR, ?
They are governed by the Cental Bank so if any directive was given from government would they have to reduce their SVR?
Thanks,
 
Do they do home loans or just buy to lets? Maybe they are the 6th lender the Minister was talking about.

Brendan
 
Brendan Burgess said:
Do they do home loans or just buy to lets? Maybe they are the 6th lender the Minister was talking about.

Brendan
Click to expand...

They took around 250 million of home loans from ICS. They are soon to enter the BTL lending market but wont be entering the PPR market even though it was PPR loans they bought.
I recently got a 0.4 % discount off my SVR for the duration of the mortgage from them as I told them I had approval in principle from KBC.
Had to fill out a mortgage modification request form and then they offered the discount.
 
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