Cllr Ronan McManus

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“FIXED RATE MORTGAGE HOLDERS NEED ASSISTANCE” - McMANUS

Issued : Wednesday 24 June, 2009

Cllr. Ronan McManus has expressed his concern about the ongoing difficulties for people on fixed rate mortgages and said that fixed rate mortgage holders need assistance.

I understand that the results of a survey published by the Irish Mortgage Corporation shows that one in five variable mortgage holders are saving more than €500 on their repayments as a result of the European Central Bank’s (ECB) decision to reduce interest rates.

While this is to be welcomed, the study also shows that one in three mortgage holders are on fixed rates and have not benefited in any way from the ECB reductions.  During my recent canvass in Bray I came across many young couples who were locked into agreements under which they are obliged to pay in excess of 5% in interest.  As we all know, the ECB's rate has been dropping since September last and now stands at 1%.

I know from speaking to these young couples that they are absolutely shocked when they were told by their banks that the penalties for extricating themselves from a fixed rate agreement are massive and do not make it worthwhile to do so.

I would suggest that these same banks who have been bailed out by the taxpayers of this country should start being reasonable and should allow people to negotiate their way out of fixed rate mortgage agreements.