Deering Calls on Lenders to Pass on Mortgage Cut.

8th July, 2012

Carlow Fine Gael TD, Pat Deering has called on all financial institutions to pass on to hard pressed mortgage holders the latest cut in interest rate. The European Central Bank (ECB) cut its base rate by quarter of one percent last Thursday. Tracker Mortgage holders will benefit from the cut as their interest is directly linked to to the ECB rate.

Deputy Deering said “I am calling on all financial institutions to pass on this latest cut in interest rate. The ECB this week cut it’s interest rate to 0.75%, a record low. However, many of our home owners wont avail of any saving if their lender doesn’t pass on the cut. People with big mortgages are under enormous pressure to meet their commitments and even a 0.25% cut would make a difference. It would mean €40 per month on a €200,000 twenty five year loan, a significant amount of money if you on the bread line. I welcome the announcement from most of the lenders that they will pass it on and I encourage the others to follow suit.”

The State can not intervene in the day-to-day operations of the banks or their management decisions including pricing and lending decisions, but Deputy Deering said “despite the banks making their own financial decisions I hope common sense prevails.