Irish fin min says expects banks to cut mortgage rates

DUBLIN, April 28 (Reuters) - Irish banks are charging customers too much on variable rate mortgages, finance minister Michael Noonan said on Tuesday, adding that he expected lenders to reduce their rates.

"I'll be impressing on them that unless they have very strong arguments, the gap between what they're getting money for and what they're charging on variable rates is too wide," Noonan told Today FM radio ahead of talks with the banks next month. "I would expect that they would reduce interest rates."

Ireland (Other OTC: IRLD - news) 's banks have been put under public and political pressure to cut rates, with the government threatening to hike its annual bank levy if they fail to do so. Allied Irish Banks (AIB) raised the prospect of easing the burden on customers last week.

(Reporting by Padraic Halpin; Editing by Pravin Char)