Nash tables Dáil amendment to help mortgage holders
- Calls on Minister for Finance and other Opposition parties to back his proposals.
- Bank Levy must be extended in Budget 2024 to target profits.
In advance of a Dáil debate on mortgage rates on Wednesday night, Labour Finance spokesperson called for TDs across the political spectrum to support his amendment that would provide the Central bank with powers to cap mortgage rates, and introduce a vital support for mortgage holders stuck in vulture funds.
Deputy Nash said:
“As the Dáil debates measures to support hard pressed mortgage holders, I have tabled an amendment that would make a real difference to those struggling with rising interest rates. I am asking all political parties to back my proposals, and for the Minister for Finance to support his own legislation that would provide much needed relief to those suffering with rising interest rates.
“Since the crash a lot of people had their mortgages sold onto vulture funds, and they are now facing ever rising interest rates. A small measure that would a huge difference to those with performing loans, but unable to re-mortgage them with private banks, is for the State to step in and use the Local Authority Home Loan scheme to refinance their loan, and give them some stability.
“Secondly, last year I introduced the Central Bank (Variable Rate Mortgages) Bill 2022 which would provide powers to cap mortgage interest rates where there is market failure. It defines a range of factors for assessing the state of the market and the conduct of banks before imposing a cap.
“The Minister should support this passing into law, because he himself introduced a similar bill in 2016 and made much political hay about it at the time. Now he is in a position to act, and ensure hard pressed families struggling with mortgage interest rises have some relief.
“Labour also wants to see the extension of the banking levy. Between them, the main banks has amassed profits this year of €5billion.
“We note the recent announcement of the new framework government says is designed to provide a pathway back to the banks for those whose mortgages were sold to vulture funds.
“Labour believes that government should consider a performance-related super-levy conditional on the number and nature of performing mortgages the major Main Street banks take back from these predatory operators.”
Notes to Editors:
Labour Finance spokesperson Ged Nash TD tabled the following amendment to the government countermotion on the SF PMB on mortgage holders to be debated in the Dáil on Wednesday night. More information on his Central Bank (Variable Rate Mortgages) Bill is available here.
To insert the following after “at their disposal”:
“— calls for mortgage holders with performing loans held by vulture funds to be provided with the option to refinance those loans through the Local Authority Home Loan scheme; and
— calls for the passage into law of the Central Bank (Variable Rate Mortgages) Bill 2022”.