Michael McGrath tells banks to help those whose mortgages have been sold to vulture funds

Finance Minister was speaking to a private Fianna Fáil meeting. File picture: Niall Carson/PA

Finance Minister Michael McGrath has asked the main banks to come up with solutions to help people whose mortgages have been sold to vulture funds.

Mr McGrath told a private Fianna Fáil meeting that he has also asked the Central Bank to look into the high mortgage interest rates being charged by non-bank sector companies such as Pepper Finance and Mars Capital.

It is understood Mr McGrath said the main banks should consider making it easier for borrowers to switch back to them — or they could buy back some mortgages from the non-bank lenders.

He said the constraint thousands of homeowners now find themselves in is a legacy of the financial crisis and there is an obligation on the mainstream lenders to play their part in finding a solution.

It is understood Mr McGrath told the meeting that a solution would have to be found for around 40,000 homeowners whose mortgages are not with the main pillar banks.

He said he believes there should be a distinct code of conduct on mortgage switching and that he had suggested to the Central Bank that it establish such a code.

The minister said he fully understands the pressure recent ECB rate hikes have placed on some mortgage holders.

At the Fine Gael parliamentary party meeting, Taoiseach Leo Varadkar said the message to the retail sector is that grocery prices must come down if their input costs come down.

He has asked junior enterprise minister Neale Richmond to hold the next meeting of the Retail Forum as soon as possible to ensure price reductions are passed on to consumers.

The meeting also heard that legislation regarding windfall tax on the energy sector will be law by the summer recess and will apply from September on profits made this year which will be used to help businesses and families with their bills.

Meanwhile, Justice Minister Simon Harris attended a meeting with the Coalition leaders to discuss his proposals to allow gardaí use facial recognition technology (FRT). 

A row has emerged within the Coalition as the Green Party wants to scrap the fast-track plan for its introduction and does not want to include it in the bodycam legislation going through the Dáil. 

Eamon Ryan has said he wants further scrutiny of FRT and for it to be dealt with as a separate piece of law. The Taoiseach and Tánaiste are supportive of Mr Harris’ proposal.