"Noonan to pressure banks to cut mortgage rates again"

Brendan Burgess

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According to today's Indo.

Michael Noonan vows to pressure bank bosses to cut mortgage interest rates again

It was also carried on the RTE Business News this morning which seemed to imply that another cut in AIB's rate was imminent.

"
Michael Noonan says he will call in the heads of all of the main banks to apply pressure to cut mortgage interest rates again, but stood over claims a move to legally force down prices could be unconstitutional.


Speaking ahead of a speech to an international banking conference in Dublin this afternoon, Michael Noonan said he is expecting State owned AIB to cut rates for homeowners further, as the bank's profitability boosts the lender resilience."
 
So am i right in saying that Noonan is suggesting that AIB will follow up the recent SVR reduction of 0.25% by another drop in the rate or is he just confusing the issue by spouting off about the same 0.25% drop that they've already announced??
 
So if nothing else this FF bill has caused Noonan to revisit the issue with heads of banks.

Could be a useful stick to use against the banks.
 
Hi Rodger

I was thinking the same myself. McGrath has been quite clear about this. He would prefer if this bill were not necessary. If the lenders bring the rates down to fair levels, he would probably pull the bill.

The other thing it has done is that it has raised public awareness of the issue which I hope will lead to more people switching.

Brendan
 
If the lenders bring the rates down to fair levels, he would probably pull the bill.
We just need to be clear here - the bill may still be necessary to protect some customers sold to 'vulture' funds but the Central Bank has no issue with this power :)

The other thing it has done is that it has raised public awareness of the issue which I hope will lead to more people switching.
The last two weeks have been dynamite from a coverage point of view. This just needs to be translated into action now ! The approval of Frank would make a huge step forward here I would hope
 
The emphasis should be on those borrowers who cant switch, a point which Noonan consistantly ignores. Frank won't be of any help to those borrowers who can't switch.
 
The emphasis should be on those borrowers who cant switch, a point which Noonan consistantly ignores. Frank won't be of any help to those borrowers who can't switch

I agree there needs to be three strands
1. Competition for those who can switch
2. Legal protection for those who cannot
3. Fair treatment between existing & new customers (KBC most guilty). This requires someone to grow a pair, or legal enhancements if necessary
 
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