A leading Fianna Fáil TD is calling on the government to put severe pressure on banks in order to stop what he describes as “gouging” money from variable rate mortgage holders.
It is understood that the Fianna Fail party are putting forward a motion before the Dail this evening calling the Government to take action on what they say is costing homeowners between €1,000 and €6,000 a year.
Fianna Fail TD Michael McGrath believes that existing variable rate customers are being hit in a disproportionate way.
Mr McGrath said: “The Government has gotten away with doing absolutely nothing about this they haven’t met the banks officially for over three years.” “At a time when people on variable rate mortgages are being gouged in this way by the institutions, it simply does not stand up.” “We know for a fact that the cost of funds for the banks is between 1-2% … yet they continue to charge between 4 – 4.5%”