Alternative lenders should create competitive market – Chambers

Published on: 19 March 2019

Fianna Fáil TD for Mayo Lisa Chambers has welcomed the launch by Finance Ireland of a range of residential mortgage products to compete with traditional mortgage lenders.

Deputy Chambers said, “Up until now, the mortgage market in Ireland has been limited with AIB and Bank of Ireland accounting for about 60% of the market between them. The entry of Finance Ireland into the Irish mortgage market is significant.

“I have met with many young couples and people across my constituency trying to get onto the property ladder. Due to strict lending conditions and an uncompetitive mortgage market they have been unsuccessful. Today’s new launch will afford those in Mayo with a greater choice when choosing where to take out a mortgage.

“With three-year fixed rates ranging from 2.55% to 2.65% depending on loan to value, Finance Ireland’s entry to the mortgage market will I’m sure not go unnoticed among the existing lenders. It is now vital that prospective mortgage holders shop around to see where they can get the best deal.

“The Irish mortgage market desperately needs more competition to drive down mortgage rates which are the second highest in the Eurozone.  I have regularly called for more options in securing a mortgage. Only recently I raised the viability of Mayo Credit Unions to serve as mortgage lenders. An Post previously announced its intention to enter the mortgage market. Local authority home loan schemes, despite their recent troubles, are also an alternative which must be supported.

“Plenty of more work needs to be done to achieve lower mortgage rates in Ireland. My party and I intend to continue the work in making mortgages more attainable and affordable in County Mayo”, concluded Deputy Chambers.

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