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Permanent TSB has offered 3,500 split mortgages, has taken legal cases against 1,600

Bank chiefs have told the Oireachtas Finance Committee that it has assisted 800 people to sell homes that they were struggling to pay for.

PTSB Asset Management Unit chief Shane O'Sullivan
PTSB Asset Management Unit chief Shane O'Sullivan
Image: Screengrab

THE HEAD OF Asset Management at Permanent TSB has told the Oireachtas Finance Committee that the bank has exceeded its target to have addressed 20 per cent of mortgages that are in arrears.

Shane O’Sullivan told the committee that the bank had over 25,000 mortgages in arrears at the end of quarter 2 of 2013 and had enacted a treatment on 6,650 mortgages.

1,500 of these were classed as short-term treatments, 2,750 were long-term, 800 were assisted voluntary sales and 1,600 accounts were subject to legal proceedings.

The company said that many of the short-term deals were moratoriums on payment that usually lasted a matter of months.

Of the long term solutions, the bank says that it has offered 1,000 split mortgages in the second quarter of 2013. That brings to 3,500 the total that have been offered by the bank.

600 loans were park, 750 were interest only or arrears capitalisation and 400 were offered a term extension.

The bank said that it typically parked 35 or 40 per cent of the loan, which they did not charge interest on.

The remaining capital would then be liable at the end of the mortgage. Chief Executive Jeremy Masding said that the bank subsequently asking mortgage holders to trade down if they were not in a position to pay was a “legitimate request”.

Read: You’re next: Permanent TSB boss faces grilling at Oireachtas

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