Dáil Éireann Debate, Thursday - 18 December 2025
220. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Finance the action he is taking to reduce extremely high interest rates being charged to some mortgage holders whose mortgages were sold to non-bank lenders after the crash; and if he will make a statement on the matter. [73181/25]
Amharc ar fhreagra228. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Finance his plans to reduce extremely high interest rates being charged to some mortgage holders whose mortgages were sold to non-bank lenders after the crash; and if he will make a statement on the matter. [69734/25]
Amharc ar fhreagraI propose to take Questions Nos. 220 and 228 together.
The Government is aware of the impact that increased mortgage interest rates has had on some borrowers over recent years.
It is important to note that the determination of retail lending rates is a commercial matter for individual lenders. Now that official interest rates have reduced, the Government expects all mortgage creditors to keep their lending rates under review.
Recent Central Bank of Ireland data indicates that mortgage interest rates have declined over the past year. At the end of September, the weighted average interest rate on all outstanding mortgages held by banks was 3.44%, down 16 basis points from 3.60% a year earlier.
For the non-bank sector, the weighted average interest rate on outstanding mortgages was 3.78% down 61 basis points from 4.39% a year earlier.
For those entities in the non-bank sector which do not engage in new lending, the average interest rate on outstanding mortgages at end-September 2025 was 3.91%, down 141 basis points from 5.32% a year earlier.
In relation to new mortgages, as at end October the weighted average interest rate on all new mortgage agreements was 3.56%, down 47 basis points annually.
The Government, the Central Bank and the industry have taken steps to assist all borrowers in response to higher mortgage interest rates.
Budget 2026 maintained the mortgage interest tax credit at the current level for a further year and at a reduced level of relief for the subsequent year.
The Central Bank regulatory framework offers strong protection for consumers and requires that all regulated entities, including banks, retail credit firms and credit servicing firms, are transparent and fair in all their dealings with borrowers. In this regard, the revised and strengthened Consumer Protection Code will come into effect next March.
It should be noted that the Central Bank consumer protection framework provides the same protections for borrowers regardless of the regulated entity with whom they are dealing, be that a bank, retail credit firm or credit servicing firm.
The industry has also adopted an aligned industry-wide set of initial eligibility criteria to facilitate switching mortgages from a non-bank to a bank and it has introduced a bespoke website, entitled 'it's in your interest', to further encourage and assist the mortgage switching process.
