Report to advise against variable mortgage rate cut

Government plans to force banks to cut deals with people in mortgage arrears look set to be overshadowed by a Central Bank report which will claim variable interest rate customers are not being “gouged” by the institutions.

As part of popular and long-awaited moves to address the repossessions crisis, the Coalition will on Wednesday publish a detailed document outlining how it will effectively quash controversial bank vetoes on reasonable debt restructuring deals.

The plan was drawn up by the Government’s economic management council amid growing public and political pressure to resolve a crisis affecting 100,000 families nationwide. It will attempt to remove the bank veto on mortgage repayment deals by allowing homeowners to appeal cases to the courts and by giving greater oversight of the decisions to an independent body.