Mortgage holders ‘denied relief by Government decision’ says Laois TD as interest rates set to rise

Sinn Féin TD Brian Stanley says that the government has prevented mortgage holders from gaining relief ahead of proposed interest rate increased.

The Laois TD was speaking after a Sinn Fein motion on the issue was defeated in the Dail recently.

Speaking directly to the Minister for Finance Michael McGrath, Deputy Stanley said that the ‘European Central Bank is set to impose three more increases on mortgages this year’.

He said: “Mortgage holders across the country are seriously struggling at the moment. I have received many complaints, as I am sure others have, from mortgage holders in Laois-Offaly.

“Some households are paying interest rates to vulture funds of 7% and 8%, with repayments rising by thousands of euros per year.

“This is happening at the same time as the banks are making huge, record profits, but offering almost 0% interest on deposits.

“Banks are not passing on any share of their profits to ordinary people and mortgage holders. Instead, they are increasing interest rates on mortgages to breaking point.

“We do not need to be reminded of this, but I will say it. It is in the context of sharp increases in the cost of energy, transport, food and so on that we are putting forward a modest measure.

“Sinn Féin is calling for a targeted, temporary mortgage interest relief scheme. We had mortgage interest relief in the past.

“It was open-ended. Indeed, the Minister called for it to be reintroduced in the past.

“What we are calling for is a modest measure. It is a scheme to support struggling householders by financially covering 30% of the additional interest paid per month, up to a limit of €1,500.

“Mortgage holders with an outstanding balance of €200,000, with 20 years left, which would be typical in a county like Laois or Offaly, have seen their interest rates go from 2% or 2.5% to 5.5% or 6%.

“They will now be paying €400 extra per month. The scheme that we are proposing will see some relief for them and would mean €120 extra in their pockets, or €960 in total in the current year.”

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