Cost of living pressures have been increased by massive increases in interest rates.
Average mortgage interest repayments increased by 51.3% in the year to August 2023. This has added a new dimension to Ireland’s housing crisis.
Meanwhile, banks are recording massive profits that are nothing short of scandalous. AIB, Bank of Ireland and PTSB made €4 billion in the first six months of 2023.
This is because of the almost €60 billion they have on deposit with the ECB, while failing to pass on the interest rate rises to depositors.
They have shown no such hesitancy with hitting mortgage holders with extra payments of hundreds of euros a month.
This is another example of an industry taking advantage of the cost of living crisis to engage in gross profiteering.
Secondly, the government should cap mortgage interest rates at 3%, to stop the rip-off of hard-pressed households.
The banks are making enormous profits and should be made to absorb the cost of capping mortgage interest rates. They can well afford to.
To put pressure on the Government to act, People Before Profit are introducing the Mortgage Interest Rates Cap Bill 2023 in the Dáil.
If passed into law, it would force the banks to cap mortgage interest rates at 3%, and to absorb any costs arising by reducing their massive profits.
The profiteering must stop. The Government must act. Cap mortgage interest rates at 3% now!