Fianna Fáil legislation aimed at ending banks overcharging customers on standard variable mortgage rates (SVR) has been voted down by Government TDs.

TD for Carlow – Kilkenny, Bobby Aylward, has criticised the decision.

He said: "During my recent by-election campaign I spoke with many people across Carlow and Kilkenny about this issue. It is something that was continuously raised with me over the course of the campaign. People feel they are trapped in a situation which is costing them hundreds of euro per month, and they simply cannot afford these additional costs.

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"A mortgage represents the single biggest financial outgoing for a household. Families have been forced to watch in absolute frustration as their mortgage rates have steadily risen in recent years.

"They are forced to pay up to €500 more per month as a result as compared to new mortgage holders with the exact same mortgage but with tracker rates. This is unacceptable when you consider interest rates are currently at record low levels.

"Our representatives in the Dáil put the issue on the agenda again at the end of March with a motion on the subject of the rip-off variable rates being charged. Since then the banks have sought to deny the existence of a problem or fob customers off with minor changes to their rates.

"The Government has been totally lacklustre with its response to the problem and has failed to convince the banks to reduce their punitive variable mortgage rates. This clearly indicates that the Government is not bothered enough to take decisive action."

(CD/JP)