The spotlight must be put on the crippling standard variable mortgage rate of 5.19% charged by Permanent TSB when the bank’s future comes up for discussion during the review mission by the troika which commences today, according to Fianna Fáil Finance Spokesperson Michael McGrath.
Deputy McGrath stated, “The Government continues to preside over a situation where State-owned Permanent TSB is charging a standard variable rate of 5.19% to its existing mortgage customers – that’s over 2% higher than another state-owned bank AIB (3.04%). It is entirely unacceptable that thousands of standard variable rate customers continue to be fleeced by the bank.
“Fianna Fáil put the spotlight on this issue with a private members’ motion in the Dáil last month. The Government must now seize the opportunity and ensure that this variable rate is reduced as part of the restructuring of the bank. The Memorandum of Understanding with the EU / IMF requires the Irish authorities to have decided on the proposed way ahead for Irish Life & Permanent by the end of this month.
“In the case of a family with a €250,000 mortgage over 25 years, the annual repayment on a Permanent TSB standard variable rate mortgage is €3,582 more than AIB. That’s an extra €300 per month because of the higher interest rate being charged. Over the lifetime of the loan, this mortgage-holder would end up repaying €90,000 more than an AIB customer for example. This differential is completely unacceptable.
“I am calling on the Government to ensure that the plight of the Permanent TSB variable rate customer is centre stage when the future of the bank is being debated this week.
Deputy McGrath also expressed his deep disappointment that the troika had refused to meet Fianna Fáil and other opposition parties during this review mission.
“It is deeply disappointing that the troika has decided not to meet opposition parties during this visit. Fianna Fáil has had a constructive exchange of views with the troika during previous quarterly reviews. It is highly regrettable that they would refuse to engage with the largest opposition party at a time when this country is facing a series of critical economic issues – not least the ongoing intransigence of the ECB to ensure there is an equitable sharing of the burden of bank debt.”