Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

Before the eligibility criteria were agreed, we had very low levels of switching from the non-bank sector to the bank sector. This is in part because the eligibility criteria were not in place. The appetite to receive such customers was limited. That has been challenged. We now have agreed criteria and we have the Central Bank confirming that around one quarter of non-bank mortgage accounts come within scope of the switching criteria. That is a very significant start. We need to see activity levels in respect of switching from non-bank to bank increase significantly. I make it clear that I will be very closely monitoring implementation of this set of eligibility criteria. I will also be monitoring the implementation of the key player in the non-bank sector, namely, Pepper. It has come forward with an alternative repayment arrangement that involves a 3% temporary fixed rate for customers. We will be watching very carefully how many customers who are in distress are actually in a position to access that rate and benefit from it. I hope I have the support of the Deputy in that regard.

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