Some 300,000 people with standard variable rate (SVR) home loans look set to benefit from reduced monthly mortgage payments from July.
Minister for Finance Michael Noonan met this week with the country’s main six lenders – AIB, Bank of Ireland, Permanent TSB, Ulster Bank, KBC and ACC – to discuss “the comparatively high standard variable rates currently being charged by the banks”.
Mr Noonan said there was agreement from all lenders that customers should have access to more competitively priced mortgages. He said he had given the six banks until July 1st to make their announcements as to how they will reduce the cost of standard rate variable mortgages for customers.
“All of them in one way or another will offer an option to each holder of a mortgage to get a reduced rate,” said Mr Noonan. In some cases, this will involve a straight rate cut, but in others it might involve offering a lower fixed rate to a customer. “We’ll expect announcements from the banks in their own time between now and July 1st,” he said.