Donegal TD Pearse Doherty has called for urgent action to end the mortgage misery faced by homeowners as interest rates rise above 4%.
The Central Bank said the weighted average interest rate on new mortgage contracts at the end of June was 4.04 per cent – the highest level in almost a decade.
Sinn Féin spokesperson on Finance, Pearse Doherty TD, has called for the introduction of temporary and targeted mortgage interest relief for struggling households.
Teachta Doherty said the increases are a massive income shock for households.
“This is despite retail banks recording a massive growth in their profits and net interest income – largely due to interest rate rises by the ECB rather than any improved performance or efficiencies,” Deputy Doherty said.
“For months Sinn Féin have called for the introduction of temporary and targeted mortgage interest relief to support struggling households.
“The Central Bank recently estimated that one in five households will see their annual mortgage costs spiral by more than €5,700 as a result of these rate hikes.
“With two in five seeing their annual mortgage costs rise by more than €3,000.
“Households who had their mortgages sold off to vulture funds without their consent, but with the support of Fine Gael and Fianna Fáil, are now facing interest rates as high as 10 percent.
“It is clear that action is needed.”
Deputy Doherty has called on the Minister for Finance to convene a meeting with the Central Bank and retail banks and chart a way forward.
“Despite the false promises of Taoiseach Leo Varadkar who supported these loan sales, these borrowers have no option to fix and are being hit with interest rates much higher than those being charged by mainstream banks,” he added.
