Fine Gael TD for Louth, Peter Fitzpatrick, has said that the Fianna Fáil bill on mortgage rates is ineffective, populist legislation, when what we need now are sustainable, long term solutions for mortgage holders.
“There is simply no point in introducing ineffective legislation that will not have the desired outcome, but will instead result in long term difficulties.
“I know the challenges people face paying high mortgages and of course I fully support any sustainable measures that would result in a reduction in monthly mortgage repayments for those on variable interest rate mortgages. The problem is that I don’t believe the Fianna Fáil bill will do that.
“In my view competition in the mortgage sector is the only practical solution, which will work now and into the future. This will, by its very nature, reduce interest rates, as new providers entering the market will want their share of the market.
“I would also suggest that we introduce a more simplified and cost effective switching procedure, which will allow people to switch their mortgage provider more efficiently. I believe this will result in more innovative mortgage solutions from the providers, better competition and ultimately a better long term outcome for the mortgage holder.
“I fully support any measures that would result in cheaper mortgage repayments, regardless of what side of the house they come from, but we must not fall into the trap of introducing ineffective legislation, with a short term outlook. We have seen what happened in the past when Fianna Fáil pursued populist policies of boom and bust. The people of Ireland are still paying a very high price for that.”