Fianna Fáil Spokesperson on Finance, Michael McGrath, said thousands of customers are being charged standard variable rates of up to 4.5%, substantially above what is charged in other European countries.
Deputy McGrath commented: "In the Dáil, I highlighted the fact that for a person with a mortgage of €200,000, the difference in interest every year is approximately €4,000 compared to a similar household in another eurozone country.
"It is completely unacceptable that at a time when the cost of funds for the banks is decreasing and their net interest margin is increasing that the cost of variable rate mortgages is not coming down, with the exception of the very welcome move announced recently by AIB.
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"The Tánaiste flat out refused to engage on the subject even though it affects 300,000 mortgage holders in this country. She engaged in a master class of evasion and waffle to avoid providing any meaningful answers. Some of her coalition colleagues have been very vocal on the issue but the Tánaiste and fellow ministers refuse to take any action.
"We are not asking the Central Bank or the Minister for Finance to direct the banks as to what level to set mortgage rates. However Fianna Fáil believes a greater degree of oversight is needed in respect of how banks treat customers in the context of a market which cannot yet be described as having returned to normal.
"If we were operating in a competitive market, customers would be able to move their mortgage to another provider, but the market for mortgage switching is effectively closed. Very few variable rate customers are able to switch their mortgage to a different provider to avail of a better deal, particularly if their home is in negative equity.
"In the context of a dysfunctional banking market there is a clear need for action to help customers who have been made take a disproportionate share of the burden of banks' attempts to return to profitability."
(CD/JP)
