Fianna Fáil: Govt has failed to help mortgage holders who pay double the rate of Euro average

Speaking at the party's launch of its plan to “Support Mortgage Holders”, the party's finance spokesman Michael McGrath said the Government has utterly failed to take the necessary action to protect mortgage holders.

“They strengthened the ability of banks to obtain a repossession order for a family home while refusing to end the scandal of rip-off interest rates,” he said.

Referencing that there were 1,600 repossessions last year, Mr McGrath said he was of the view that such repossessions should be a last resort.

“Repossessions should be a last resort and not the first move by the banks. What we need is a properly working mortgage to rent scheme which would allow people stay in their homes,” he said.

Mr McGrath said the banks' response to the crisis has been totally inadequate.

“Despite the fact that variable rates in Ireland are more than 2% higher than the euro area average, most banks have offered little more than reductions in their fixed rates,” he said.

He added that the party is seeking to have rental income included in the deposit calculations made by banks when offering mortgages.

Mr McGrath said he has already spoken to new Central Bank Governor, Philip Lane, about his proposals and he claimed the Governor has committed to seeing if it is viable.

There were questions about whether the party would do a deal with Fine Gael.

Mr McGrath and Barry Cowen TD said the debate around a deal was a clear sign that the Coalition are in a state of panic.

“The people don't believe Fine Gael and Labour, because they have been burned, just five years ago. Fine Gael and Labour are focus-groupped to death but it is clear they have got it wrong,” said Mr McGrath.

But neither Mr McGrath or Mr Cowen fully ruled out such a deal happening after the election.