A proposed law aimed at capping mortgage interest rates is unlikely to go ahead as envisaged, The Times understands. In what would be a major blow to hard-pressed homeowners, a bill aimed at limiting the interest rates that banks can charge customers is likely to be stripped of its key component and watered down. Michael McGrath, the Fianna Fáil finance spokesman, introduced the Central Bank (Variable Rate Mortgages) Bill in May 2016 to give the watchdog the power to cap mortgage interest rates. The bill also seeks to eliminate cash offers in order to force banks to compete on rates and aims to prohibit lenders from favouring new customers over existing borrowers. The proposed legislation was opposed by Michael Noonan, the former finance minister, while…

Source: The Times September 11, 2017 23:03 UTC