IN A MEETING between Simon Harris, banks, credit unions and non-bank lenders, the Taoiseach said he wants the cost of monthly repayments to fall “as quickly as they rose”.

During the discussion, sought by the Taoiseach, the group discussed mortgages, the housing market, SMEs and farmers.

Irish lenders have previously come under fire from customers and politicians over claims that they have not been fair for the cost of mortgages or enticing enough with the return for lenders. 

The banks, however, have insisted that they have been fair and are working in line with interest rates set by the European Central Bank. Harris today said he believes monthly mortgage repayments should “fall just as quickly as they rose”.

Harris recognised that it is a commercial decision for each bank to take but he said he has urged lenders to have a “responsible approach” to reductions and added that the Government would be monitoring the situation over the coming months. 

It is understood that he later emphasised this belief to his parliamentary party, adding that a similar approach must be applied in slashing rates as was provided when they were first hiked.

Gabriel Makhlouf, head of the Irish Central Bank, has said that he wanted just one more cut to interest rates this year by the European Central Bank in order to determine, with certainty, that inflation rates are on a path to drop to the desired 2%.

According to Harris, there is recieved limited evidence that of any increases in mortgage arrears at this time.

Separately, he added that the banks have welcomed the Government’s move to build up to 50,000 homes per year – announced by the Taoiseach after his election as leader of Fine Gael.

He said the lenders’ representatives were keen to make more development finance available to assist with the delivery of that target.