The Ryan Review

THE latest policy spread from the Central Bank should be called: “I-can’t-believe-it’s-not-Low-Low.” It’s not so much a butter substitute as a buttering-up substitute.

The bean counters have spent weeks ensconced in the marketing department of our banks reviewing their advertising, specifically that which is encouraging customers to switch mortgages.

They found they didn’t much like what they saw, and banned terminology such as “lowest interest rate” or “low, low interest”, or the ones that promise jam on top in incentives if you’ll only shift your debt to them.

It seems that 75pc of planned advertising (billboards, posters, TV and radio) had to be pulled or amended under order of the new Director of Consumer Protection Grainne McEvoy.

I’m not sure borrowers need so much minding. We’ve all become far savvier at reading between the lines of ads, especially those of banks, and shopping around for what we need. After all, there are only a handful of lenders out there.

The clampdown also sees extra measures being taken about cooling off periods on fixed rates (now 60 days), and a requirement to tell customers about lower rates it may have if their loan-to-value band changes (this is good as most people haven’t a clue they can switch within their own lender for this reason). In addition, showing ‘total interest payable’ is now a requirement, which is how personal loans are compared, and any incentives must be given to existing rather than just new customers.

The bland billboards will be worth it.