The percentage figure, which came to light in an IMF report of recommendations, would have cost homeowners roughly €500 per €100,000 borrowed.
Speaking from Fine Gael’s think-in in Mayo though, Minister Noonan moved quickly to allay the fears of homeowners, saying that he thought the new charge was “too much”.
He said: “On the IMF advice that should be 0.5 per cent of the value, which would bring in about €1 billion, I would not propose to the Government at that level. I think it’s too high.”
Read more on the subject in today’s Irish Times.