Independent TD Seamus Healy has called on Tipperary Ministers Alan Kelly and Tom Hayes to stop what he calls “the daylight robbery of mortgage holders by banks”.
He claimed that Irish variable rate mortgage holders are being overcharged by €1 billion as banks rake in super-profits.
He said that 380,000 Irish variable mortgage holders paid an EXTRA €1 billion above their European counterparts in mortgage repayments in 2014.
“AIB made €1.1 billion profit, Bank of Ireland made €920 million profit in 2014. Together with Ulster Bank the total profit came to €3 billion. Irish variable rate mortgage holders are paying typically 4.5% interest whereas our European Counterparts are paying almost 2% less”, he said
“The difference is a €1 billion Euro PER YEAR penalty for Irish mortgage holders”, he said
He added - “The ECB wholesale money rate was held at 0.05% -almost zero, last week. It is welcome that banks have had to reduce rates to new customers to compete for business. But existing mortgage holders are being fleeced
“During 2014, the robbery of bank customers increased. Though net lending to customers of the 3 banks fell by €17 billion in 2014, the bank made more profit by increasing the difference between deposit rate and interest rates! David Doyle of investment firm ETX Capital said: “their return to profit has been aided by raising the interest rate margin on loans, reducing tracker mortgage exposure and lower savings deposit rates. (Sunday Independent March 8)
“And now that house prices are rising, banks are increasing applications for repossession of homes. The Court Service says that there are 7001 applications for repossession before the courts and the Irish Mortgage Holders Association says that 25,000 homes will be repossessed this year if government does not intervene.
“Last year state owned AIB repossessed 345 homes, Ulster Bank 500 and BoI 200 (Central Bank Report March 6,2015)
AIB, Permanent TSB and EBS are owned by the state. It is the duty of the Central Bank to police the Banks. It has the power to stop this robbery of mortgage holders It is allowing it.
“The government appoints the members of the board of the Central Bank. All the Irish elites are represented on it. But 380,000 variable mortgage holders are not represented!
I am calling on Ministers Kelly and Hayes to insist that the government stops this robbery Now”