Permanent TSB (PTSB) says it is offering around 500 distressed borrowers deals such as split mortgages where part of their loan has been set aside. Just 1% interest will apply to the part of the mortgage that has been parked.
It comes as uncertainty grows over whether lenders will be able to tell parents they should give up work if they cannot afford childcare.
PTSB is the first of the main Irish banks to respond to a government order to deal with a set number of distressed mortgages every 3 months.
It is going to offer deals like interest-only repayments but debt write-downs will not be on the menu.
It comes as speculation grows over what will form part of guidelines on living standards due to be published by the Personal Insolvency Service.
CEO of PTSB Jeremy Masding says he is confident that solutions to the mortgage crisis can be found without having to write-off chunks of debt.