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

I have met Pepper directly ,and my officials are meeting it again this week. Neither I nor the Central Bank have the power to intervene in respect of interest rates. The Central Bank has been clear that it does not wish to have legislative powers in this area. I have, however, reminded Pepper and other non-bank lenders of their obligations to borrowers, including full adherence to the code of conduct on mortgage arrears and the need to work through individual cases sympathetically and compassionately and come up with individual solutions. It has brought forward a new fixed rate alternative repayment arrangement. That is a temporary product which is offered when people are in difficulty with their mortgage. It is at 3%. I encourage customers of Pepper who are genuinely struggling to reach out to it and seek access to that alternative repayment arrangement. I will also be monitoring the implementation of the new code we have agreed on mortgage switching, which is designed to facilitate people in the non-bank sector switching their mortgages to the bank sector.

It will not be an option for everybody but for some people it will be.

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