‘If something doesn't happen, people will lose their homes’

A local councillor has called on the Minister for Finance and Central Bank to put pressure on third party lenders and investment funds who’ve snapped up mortgage portfolios but are now “refusing” to renegotiate with homeowners in light of rising interest rates.

There has been a significant rise in the variable rate and an increase in its fixed rates for new customers at many banks.

Independent Brendan Fay said that families are at risk of defaulting on payments following a fifth rise in rates by the European Central Bank (ECB), adding up to €400 a month to a €330,000 tracker mortgage.

A further rise next month is set to add close to €90 more a month.

Listing off a who’s who of third party lenders operating in Ireland that grew out of the economic crash a decade ago, Cllr Fay said these “vulture funds” bought bad debt from banks but are failing to engage with homeowners struggling to make ends meet.

Fellow Independent, Shane P O’Reilly, was frank in his response and support for the motion, telling those in attendance that he “went through all that” himself, only to find that the third party lender he engaged with was “better than the bank on Main Street in Cavan where I’d an account since I was 11 years old".

He acknowledged that “people are worried” at the present time, and said that Minister for Finance, Michael McGrath would have a role to play in addressing the nation to help “allay” those fear.

“There has to be a cut off point somewhere!” he exclaimed.

Otherwise, Cllr O’Reilly contended, to try and remedy the situation later would be like “opening the stable door after the horse had gone.”

He said the hope for many was that the rate inflation would begin to drop again, but that might not be soon enough for some.

“A pound of flesh” would still be required from many lenders. “If something doesn’t happen, people will lose their homes.”

Fine Gael’s T.P. O’Reilly noted that inflation had “levelled off” to a great extent. He predicted another half percent rise in March, but hoped “that would be that”.

The issue, however, he said, was “bigger than the council” could deal with.

Cllr Fay said it was it was “fine and dandy” to suggest that, but that he had people calling him voicing concern that they can’t “pay their mortgage, or go to the shop to buy food for their children".