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Mortgage rate fears

THE Irish Banking Federation (IBF) is not comfortable with a threat to prevent banks from setting their own standard variable mortgage rates, it has said.

Pat Farrell, of the IBF, said banks were mindful of circumstances for individual customers but the organisation was opposed to regulation of rates.

Last week, Financial Regulator Matthew Elderfield said banks' variable rates hikes were making things worse for customers and adding to the problem of mortgage arrears.

He warned that, if banks did not stop, he would seek a public policy response to address the issue.