herald

Monday 18 December 2017

Banks deal taxpayers a new blow

HOMEOWNERS on variable mortgages are now likely to face higher repayments to compensate for insolvent home loans.

Bank of Ireland has been first out of the traps to admit it is looking at raising the interest rates on home loans.

Its argument for increased pricing is that new insolvency laws due later this year will make mortgage lending more risky.

It is likely that other banks will be thinking similarly. However taxpayers who bailed out the banks will feel aggrieved that, yet again, they are the ones who get hit in the pocket.

We know that many people are behind in their mortgage payments, and this will surely exacerbate the problem.

Whatever action the banks take, it should be done in a controlled and responsible way, and in as equitable a manner as possible.

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