Pepper Asset Management has announced it is to offer mortgages to the Irish market.

However, Fianna Fáil Finance spokesperson Michael McGrath said Pepper has been one of the more aggressive firms in pursuing repossessions cases against borrowers who have fallen in to arrears.

Deputy McGrath said: "In this context it is important that we have a strengthened Code of Conduct on Mortgage Arrears. As it stands there is a serious gap in current legislation whereby a bank can get a repossession order even if it has failed to comply with the Conduct on Mortgage Arrears. I have published a bill which will prevent this happening. It is alos our intention that banks would be significantly penalised for breaches of the CCMA.

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"I also believe there is an ongoing need to legislate to deal with excessive standard variable rates. Fianna Fáil will legislate for to give the Central Bank responsibility for monitoring the level of competition in the mortgage market and the fairness of rates charged. This would act as a strong deterrent to banks from charging excessive rates and would only necessitate Central Bank action where the evidence points to a clear market failure."

(CD/MH)