Fianna Fáil is calling for more to be done to bring mortgage rates in Ireland closer to European norms.

The party made the call after the Bank of Ireland announced it is to cut its mortgage rates for fixed rate customers by up to 0.35%, however the bank is continuing to charge standard variable rate mortgage customers up to 4.5%.

Spokesperson on Finance, Michael McGrath welcomed the Bank of Ireland's decision, however he said the bank continues to make huge profits from customers who have remained on the exorbitant standard variable rate.

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He said: "This Bank of Ireland fixed rate cut follows other rate reductions in recent times by KBC, Permanent TSB and Ulster Bank. It is encouraging to see some evidence of competition in the mortgage market resulting in downward pressure on rates.

"Anomalies remain across the system, however, including discrimination against existing customers, customers with falling loan to value ratios not being allowed to benefit from a lower rate with their existing lender, the lack of a Code of Conduct on Mortgage Switching, and some lenders competing on cashback offers rather than interest rates.

"Fianna Fáil has been to the fore in championing the case for Irish mortgage holders to be charged rates more in line with European norms. Our legislation on variable interest rates, which passed second stage last year and has undergone pre-legislative scrutiny, is currently awaiting Committee stage at the Oireachtas Finance Committee as the Minister for Finance seeks further legal advice from the Attorney General."

(CD/MH)