Irish Banks must allow customers move from fixed to variable mortgages

Irish banks must implement a policy that allows customers to switch from fixed to variable mortgages.

“Many mortgage holders are benefitting from the fall in their interest payments after the European Central Bank (ECB) cut interest rates to an historic 1%.  However, tens of thousands of people are paying fixed rate mortgages at 5.5% or higher.  These customers must be allowed benefit from the lower interest rates.  The banks must make it easier for customers to switch from fixed to variable rates.  

Banks must demonstrate a willingness to help people through this recession; they have to make things easier for their customers.  The costs associated with switching from fixed to a variable rate are too high and given the current economic climate these costs eliminate the possibility of switching.  Those who are on fixed interest rates are under immense pressure to meet repayments and many live in constant fear of losing their home.  This is a particular problem in Dublin which saw housing prices soar during the boom years and many are paying interest rates of 5.5 % or even higher.

Home owners must benefit from the lower interest rates that are now available.  It is in the interests of the banking sector that it takes care of its customers during these recessionary times.  Not enough information is given by Irish banks to customers of the benefits that could accrue to switching mortgages from a fixed to a variable rate.

In a spirit of solidarity, and taking into account the support the state is now giving Irish banks from taxpayer monies, the banking sector itself must demonstrate to the people of Ireland that it is willing and able to help people through this recession.  Banks must become more flexible on this issue.  They must initiate a policy that facilitates customers to pay their loans at variable and not fix rates.