The Minister for Finance has confirmed he will ask the Governor of the Central Bank "to consider what influence the Central Bank (can) bring to bear to bring variable mortgage rates closer to the cost of funds".

Fianna Fáil Finance spokesperson Michael McGrath welcomed the commitment from the Minister.

Deputy McGrath said: "Clearly the Minister and his government colleagues are feeling the heat on this issue in response to the pressure we have brought to bear in the Dáil and the work of consumer advocacy groups.

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"He has made this climb-down from his previous hands off approach directly as a result of the motion Fianna Fáil moved in the Dáil during its private members time last evening.

"It is important to state that this is only the start of a process to ensure fair and transparent pricing of mortgage products in the Irish market.

"For too long the banks have been able to use their dominance to the detriment of customer interest. We need a competitive banking structure that works for families and individuals."

(CD/JP)