Courts may get power on mortgages

Courts could soon be given the power to over-rule banks on how to resolve mortgage arrears cases as the Government considers a number of ways to help struggling borrowers.

Further bank levies may also be applied to lenders if they do not lower their variable mortgage rates, Tánaiste Joan Burton said yesterday.

The comments come ahead of a mortgage arrears package that the Coalition is expected to announce in the coming weeks. However, it remains unclear how agreed Labour and Fine Gael are on measures to ease mortgage pressures, including the possibility of overhauling the new bankruptcy terms.