The Cork South-Central TD was responding to confirmation from Bank of Ireland's CEO, Richie Boucher, that the bank is lowering the interest rate for customers on variable rates who avail of split mortgages.
"I would give a measured welcome to this decision by Bank of Ireland to soften its approach to those on split mortgages, specific to those on the variable interest rate. I also note that it is a direct outcome of the bank engaging with the Finance Committee in recent weeks at which this concern was brought to their attention.
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"However, I don't think it goes far enough. It continues to be the case that Bank of Ireland is keeping the non-active side of the mortgage 'live' by requiring customers to continue paying interest on the warehoused portion of the mortgage. By insisting that distressed customers do this, Bank of Ireland is completely out-of-kilter with other financial institutions like AIB or Permanent TSB who charge no interest.
"Not only is it leading to inconsistency across the banking system, but it is also resulting in an inconsistent approach to distressed Bank of Ireland customers as it differentiates between those on tracker and those on the variable interest rate.
"Whilst we must be thankful that some progress is being made, we need the approach to be more consistent. I would also encourage Bank of Ireland to explore other solutions, such as the concessionary mortgage resolution being offered by Ulster Bank at the moment."
(CD/JP)
