Michael McGrath says it shows the insolvency process can lead to better outcomes for borrowers.
The Finance Minister is welcoming a Laois couple being awarded a much lower interest rate in Tullamore District Court.
The couple's Personal Insolvency Practitioner argued their debt could be repaid, if it was brought down to the value of the home they were living in, and stretched over 25 years at a rate of 2.5%.
The lower rate was awarded as the servicer acting on behalf of vulture funds couldn't why that arrangement was unfair.
Finance Minister Michael McGrath says loan owners and mortgage providers should be offering fixed rate options to their borrowers.
He also says it shows the insolvency process can lead to improved outcomes for borrowers.
Statement from Finance Minister Michael McGrath:
"I welcome to judgment. I believe that loan owners and mortgage providers should be offering fixed rate options to their borrowers. This is an issue I've raised directly with them and also with the Central Bank.
At present under the Code of Conduct and mortgage arrears the lenders are only required to consider the alternative repayment arrangements from the suite of options that they offer. So they're not required to consider all of the possible options. And we know for example, that Pepper has not been offering fixed rate product solutions to borrowers and I do think for some customers that certainty of knowing how much they will have to pay or two years ahead is very valuable.
So I welcome to judgment and it does just show that the systems we have in place through the insolvency process through the code of conduct of mortgage arrears can lead to improved outcomes for borrowers and hopefully we will see more such outcomes into the future."
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