Elderfield: Mortgage holders shouldn't be punished for mistakes of others

The Financial Regulator has said people who are "gritting their teeth" to meet their mortgage obligations should not be punished for the mistakes of others.

Matthew Elderfield is warning against any solution to the mortgage arrears problem that offers a financial incentive for it to get worse.

New figures, due out tomorrow, will show the number of people who can't pay their mortgage rose again in the first quarter of the year.

Speaking to the Insurance Institute of Ireland, Mr Elderfield also warned banks against taking advantage of customers in difficulty.

"Consumers are indeed suffering because of weaknesses in prudential regulation," he said.

"But that doesn't mean financial firms get a free pass on consumer protection while we sort things out.

"Consumer protection will remain a top priority for the Central Bank."