Update on Fianna Fáil bill to control mortgage rates

[Brendan Burgess]

Fiann Fáil issued a press release yesterday commenting on the Central Bank mortgage rate report.

Apparently the Minister for Finance has written to the Finance Committee suggesting an independent economic analysis of the Bill be conducted to preempt any constitutional challenge.

However, Michael McGrath now intends to proceed with two other aspects of the Bill and hopes that they can become law before the end of the year. These would not be delayed by the economic analysis.

• a prohibition on lenders discriminating between new and existing borrowers
  
• A ban on cash back offers

This would force lenders to compete on mortgage rates.

“I will be proposing that the Committee Stage on these aspects of the Bill proceed without further delay so that they can become law as quickly as possible while we are awaiting the independent economic analysis on the other key provisions of the Bill,” concluded McGrath.

 

[Brendan Burgess]

If the government and Central Bank are clever, they would encourage these aspects of the Bill to go through without delay.

It's just possible that the resulting competition might reduce rates to levels where no further legal intervention were necessary.

Brendan

 

[cremeegg]

FF proposing a ban on cash back offers. Wonders will never cease.