Minister McGrath convenes meeting of banks, non-banks and other stakeholders on the importance of supporting mortgage holders

The Minister for Finance Michael McGrath today (Thursday 31 August) met with representatives of the banking and mortgage sector to discuss the measures they can take to assist their customers at this time of rising interest rates.

The CEOs and senior representatives of the retail banks, retail credit firms and credit servicing firms and the Banking and Payments Federation Ireland (BPFI) attended the meeting. The Central Bank of Ireland, Citizens Information Bureau (and its Money Advice and Budgeting Service) and the Insolvency Service of Ireland were also represented.

The meeting builds on the work of the Central Bank to ensure that the entities it regulates are meeting the Central Bank’s expectations to act in consumers’ best interests and to support borrowers at this time.

Minister McGrath said:

“I am acutely conscious of the impact that rising interest rates are having on mortgage borrowers. Many mortgage holders have been in direct contact with myself, my department and political colleagues, sharing their own personal story and I know that many are worried about their ability to pay their mortgage now and in the future. We heard at first hand at the meeting today from MABS and the Insolvency Service of Ireland about the real life examples they are dealing with and the increased demand for their services generally.

"I believe that the vast majority of mortgage holders in Ireland are making a genuine effort to pay their mortgage. There are supports available and with the rapid change in the interest rate environment, industry must engage with their customers to prevent them falling into arrears. For this reason, I invited the banks, the non-banks and key stakeholders to a meeting today to discuss the imperative of supporting mortgage holders through this period of increased interest rates.

"I support the ongoing work of the Central Bank to ensure that the financial system identifies how consumers could be better supported at this time, with the potential for greater coordination by firms including in the area of switching, and where the information provided to consumers, and the options available to them, could be enhanced.

"It will now be necessary for the industry to demonstrate that they are delivering for borrowers in difficulty with supports and certainty, and developing long-term sustainable solutions for borrowers.

"I have asked the industry representatives to reflect on the discussion today and to set out their response as a matter of priority.”