The Department of Justice has confirmed it is to review the 8% interest rate applying to judgment mortgages.

Fianna Fáil Spokesperson on Finance Michael McGrath received confirmation of the move after he submitted a Parliamentary Question.

Deputy McGrath welcomed the news and said over 40,000 judgment mortgages have been granted in the period 2010 to 2015.

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He said: "The Tánaiste has now confirmed to me that an 8% interest rate is typically applied to judgment mortgages under the Courts Act 1981 (Interest on Judgment Debts). Many debtors are not aware of this and only realise it when the judgment mortgage is discharged, often years down the road.

"Applying an 8% interest charge per annum on a judgment mortgage is punitive and unnecessary. No one wants to have a judgment mortgage registered against them and I welcome the fact the Department of Justice and Equality is embarking a review of this interest rate."

(CD/LM)