Mortgage Rates Set To Increase

Permanent TSB have decided to increase interest rates by another 0.5% which will force struggling householders to pay an average of €85 extra per month with effect from the 3rd of August 2010. Permanent TSB have revealed that from this date homeowners on their variable rate will have to endure a 0.5% increase. This could mean an additional €100 a month for any householders currently paying a €300,000 mortgage. This increase is set to affect up to 80,000 consumers nationally however other main lenders such as AIB & Bank of Ireland are also set to follow suit with similar increases so the number of consumers due to be affected by such increases is set to be much higher. These increases have dealt consumers a body blow with many already struggling to keep up with repayments.

Labour’s spokesman on housing Ciaran Lynch has hit out at the increases and has voiced his concerns quite clearly. He said: “We already know that tens of thousands of homeowners are under immense pressure wit their mortgages, with many of them falling into arrears, and an increase in interest rates, can only exacerbate this problem. “ At a time when the underlying ECB rate has remained static for 14 consecutive months, such increases are completely unjustifiable. “What we are now seeing is a situation where banks, hell bent on improving their own revenue streams, are gouging ordinary families”. Mr Lynchs’ comments are justified as there is no other reason for increasing interest rates on mortgages when consumers are already struggling with repayments. It is inevitable that more homeowners will now fall into arrears with the inevitable increases.
This seems to be another blatant example of how the banks treat the consumers of Ireland. Not only is it the taxpayers who bail out the banks but it is then these taxpayers who suffer as a result of it. There seems to be no winning with these profit hungry lenders. Fine Gael Cork TD Deputy Bernard Allen summed it up quite perfectly when he said “the banks were bailed out by the taxpayers and they are repaying us by putting this pressure on people. This extra charge will push people over the edge.”

The banks within Ireland clearly have no regard for the struggling homeowners. The alarming thing is that many of the mortgages set to increase might have been mis-sold in the first place. It is advisable to check the terms and conditions of your Mortgage agreement as you may find that you have grounds to make a claim for mis-selling. Consumers need to be fully aware of their financial rights which are protected by law as it is highly unlikely that a lender will approach you and make you aware of mistakes it has made or clauses it has failed to include in your contract when you secured your mortgage. To find out more about mortgage mis-selling please visit our website.