Just as the European Central Bank (ECB) announced it would hike interest rates once more, the Tánaiste ruled out providing householders with mortgage interest rate relief.
Rate reductions for homeowners are not being considered, according to Leo Varadkar, because doing so would require reopening the budget.
In an effort to curb the rise in inflation, the ECB raised interest rates for the fourth time this year, bringing the rate to 2.5%.
Pearse Doherty, the finance spokesman for Sinn Féin, reiterated his demands that the government provide assistance to struggling families.
The government was urged by him to look into options for a "targeted, personalized, and time-bound" mortgage interest reduction.
According to the Donegal TD, someone with a mortgage of €200,000 would see their payments rise by more than €3,000 year.
Before the ECB announcement was made official, Mr. Doherty informed the Dáil that the interest rate was anticipated to increase by a further half percentage point today, to 2.5 percent.
"This will immediately affect the 194,000 customers and households with tracker mortgages; however, the destiny of individuals with variable rates or whose fixed rates are about to expire depends on the banks' decision to pass this interest rate on to them in the upcoming months.
"We in Sinn Féin have made it clear time and time again that the banks should absorb these interest rates for the benefit of their clients, and I reiterate that position today.
"They are in a position to profit from the backdrop of rising interest rates, but they shouldn't; they should act morally, and I would ask that you would echo that request on behalf of the government.
I requested that you and your administration look into ways to provide targeted, personalized, and time-limited mortgage interest relief for struggling mortgage borrowers who are and will face significant rises in interest rates.
The raise that will be announced on Thursday, according to Mr. Varadkar, "or the second last one," should be the last.
The reason the Central Bank is raising interest rates, according to Mr. Varadkar, is because "the ECB is independent in its powers and it has a special mission to keep inflation under control, to get inflation down to something around 2%."
But it goes without saying that the cost of repayments will increase, which will be exceedingly terrible news for those who have mortgages and other types of borrowers as well.
"That comes at a time when everything's getting more expensive. For many families and other borrowers, it will be a very tough and unwelcome new experience in the coming months.
"At this time, there are no plans for us to bring back mortgage interest relief. In the past, it was real. what was typical back then when interest rates were significantly higher than they are today.
Although he noted that there are no plans to provide interest relief, he stated that the Government will not completely rule it out in the future.
The Fine Gael leader continued, "It would need revisiting the budget and all implications that would result from that."
Additionally, he warned banks to avoid boosting profit margins by taking advantage of higher interest rates.
That is the message regarding interest rates that we will provide to the banks, he continued.
Families and homeowners will get a fourth letter since the summer informing them that their mortgage interest rate would increase once more, according to Mr. Doherty.
"For people, that will add an additional €4,000 in interest throughout mortgage repayment. That pushes many, many families over the line," he continued.
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