Mortgage Rates: Are banks fleecing consumers with interest rates?

Mortgage Rates: Are banks fleecing consumers with interest rates?

Mortgage Rates: Are banks fleecing consumers with interest rates? According to a new report from the Financial Regulator’s consumer panel, Irish consumers are being “mercilessly fleeced” by the banks by paying higher interest rates in order to rebuild their balance sheets.

The report highlighted that while consumers in other countries are enjoying historically low interest rates set by the European Central Bank, Irish consumers are not benefiting from the ECB rates and are actually paying higher rates than before the crisis hit. Standard variable rate mortgage holders have been hit with three rate hikes already this year by all the leading lenders and the Financial Regulator’s consumer panel believe that householders who do not have a tracker mortgage are being singled out.

Not only that but the panel said it is concerned that the consumer is being forgotten and is now paying for the misjudgements of the Irish financial services sector in the last number of years.

Have your say: Mortgage Rates

  • Are banks fleecing consumers with interest rates?
  • Should the financial regulator have the power to force institutions to pass on interest rate cuts or to prohibit interest rate increases?
There are 18 comments for this article
  1. Kevin at 9:18 am

    What a rip off!! Just to think that a Bank can put its hands in your pocket and take more money any time it feels like it. What is the actual function of a finiancal regulator, I mean I’m full sure it is to regulate the banks in order to keep the system fair- ha ha what a joke standard variable rate holders are paying 18 times more interest than trackers. The minister for Finance and the rest of the fat cats turn a blind eye. I’s time now these mortgage holders started to play dirty just like the banks and form an alliance. If these SVR mortgage holders jointly refused to pay their mortgage until interest rates came down by say half a percent to begin with, then the banks might take the human race more seriously. I say fight fire with fire and hit them where it hurts most. The government wont help!!

  2. dublin paddy at 12:33 pm

    i think the financial regulator should get in there quickly and put a stop to this bullshit because i can imagine in the very near future the people of ireland are gonna take a stance and, like our european counterparts, will resort to anarchy in the streets to take back our country from these fat cats and the sooner the better i say…

  3. Bowlesy at 8:00 pm

    It doesn’t give consumers confidence. If the houses are at an all time low but are replaced with high mortgage rates where is the incentive to change or buy a property? It clearly is a case of getting the banks out of trouble and getting us (the tax payer) to pay for their mistakes.

  4. Walter Redfern at 5:28 pm

    The only way to protect ourselves from the banks.
    is to form “a mortgage holders union – forum” and fight back in mass. The ultimate weapon would be a mortgage holders strike.
    Also peoples who’s houses are repossessed via “no fault of their own” should be allowed to rent their house back from the banks. ( we are seeing young families disenfranchised after they paying mortgages in good faith for years. They have to leave their house, the children leave their schools, their families their neighbors, and “go into the wilderness” This is no good for communities.


  5. michael Shiels at 4:46 pm

    The regulator in the past had the power and nothing happened but received a reward for not upsetting the apple cart. I dont expect anything different from anyone in “power” over our lives. Ethics, morality and
    basic respect are words not familiar to those who should be looking out for joe-public. Honour is non-existant in this country.

  6. JD at 3:07 pm

    AV Watt has missed the point completely! Of course one can expect rates to rise, but the ECB is at an all time low, so what makes it wrong for a mortgage holder in Ireland to want/expect to avail of this opportunity like the rest of Eurozone mortgage holders??

  7. James Lavelle at 2:13 pm

    We the Irish public are being abused by touubled Banks
    trying to correct their self inflicted problems

  8. monicabutfoy at 1:41 pm

    Yes banks are ripping people of. My mortgage is nom higher than ever. I have a one bed cottage 175k mortgage and i am paying 860 euro per month. There was a time last year when i was paying 625 per month. But of course nothing will be done about it we have to just sit back and take it!!!

  9. Shane Griffin at 1:34 pm

    banks are fleecing consumers with interest rates,
    The financial regulator should have the power to force institutions to pass on interest rate cuts or to prohibit interest rate increases.

  10. John at 1:06 pm

    I’m afraid mainstream Banks in Ireland have had it too unregulated for far too long. They need to be more tightly controlled, in what rates they charge and transparency in costs added on, no doubt. Yes banks need to make a profit, but control margins made, and have accountability and independent regulation.

  11. Pablo at 12:42 pm

    Ha ha of course you’re getting fleeced but you deserve it. Stop being stupid! Try voting a party into gov who will work for the country as a whole and not just for their locality. Then maybe the problems will be addressed before they become so big. Face it: there were people saying that Ireland needed to cool down property prices back as far as 2002/2003 but they were told to F off. And at the next general election the same goup of gombeen thieves were voted in again. Suck it up little people, your masters will decide what to do and who will pay for it!

  12. Brokers at 12:38 pm

    Mortgage finance needs new foundation, the brokers and lenders are providing a new direction to it these days.

  13. BW at 12:35 pm

    The financial regulator should have the power to force institutions to pass on interest rate cuts or to prohibit interest rate increases.

  14. Bernie Wynne at 12:34 pm

    The tracker rate should be available to all consumers paying mortgages.

  15. John at 12:33 pm

    I have a tracker Mortgage with AIB received a letter yesterday telling me they had very kindly switched me from Fixed to variable and lodged 17 euro to my account to apologizes for the error. I had to go to my branch with documentation to get it sorted. A “mistake” that would have cost me if I wasn’t paying attention. be aware of any similar letters you receive.

  16. Noel at 12:33 pm

    There surely must be something wrong with a system which punishes people, who have done nothing wrong other than wanting to own their own home, while continuing to support and reward the banking system who through their greed and incompetence have destroyed the economy and peoples lives. As tax payers, and through the intervention of the government, part owners of the majority of the Irish banks, we would expect that banks should be working for us, not fleecing us at every turn which is what’s happening. Have we learned anything from this mess?

  17. Flex at 12:31 pm

    Of course they are. It’s the same group of people that are being screwed again by the ‘market’ and while our obsession with property continues and continues to be pushed by Government, we will all continue to be hard done by. Those who bought property at inflated bubble prices are in the majority now those PAYE workers whopse taxes are re-capitalising the same banks who are hiking interest rates to fix their balance sheets…….. Unreal!!!!

  18. AV Watt at 12:31 pm

    If you signed-up for a variable rate mortgage when interest rates were at an all-time low and now complain about increases, you are a very foolish person. Rates had only one way to go, and that was up. And now they have. People made their choices and must now live with the result of their greed and stupidity, or do they expect the long suffering tax payer to bail them out too?

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