- Oct 26, 2006
Irish borrowers are being mercilessly fleeced as banks raise interest and other charges in order to rebuild their shattered balance sheets in the wake of the property crash, a report has found
The consumer panel of the Irish financial regulator, a government-appointed watchdog, said on Thursday many borrowers were paying more today than before the financial crisis, even if the European Central Bank kept rates at historic lows.
FT.com / Europe - Irish banksHowever, the report said borrowers on variable rate mortgages were effectively being treated as second class citizens who are being forced to pick up a disproportionate share of the bank rescue costs.
Pretty damning report. People on variable mortgages are being forced to make up the bank losses. This is contrary to the ECB which is promoting and maintaining low interest rates as a means to get out of the recession.