Thursday, September 05 12:29:04
Shane O'Sullivan, permanent tsb bank's asset management executive, today told a Dail Committee that the bank has 25,000 customers whose home loan accounts are in arrears and has offered solutions to 26pc of them.
Speaking to the Oireachtas finance committee today, Mr O'Sullivan said the bank had offered 6,650 "treatments" up to end of June.
The solutions offered include 1,500 short-term treatments (such as a moratorium or interest only), 2,750 long-term solutions (such as split mortgage or term extensions), 800 assisted voluntary sale and 1,600 legal cases.
Permanent TSB said up to September 3rd it had offered 3,500 split mortgages. Most of these mortgages see 30 and 45pc of the value of the property warehoused with no interest, Mr O'Sullivan said. He said the bank considers warehousing part of a mortgage up to E100,000.
These split mortgages are reviewed every three years to see if the customer's circumstances have changed, Permanent TSB chief executive Jeremy Masding said. Mr Masding said the bank seeks restructured mortgages to be repaid by the time the customer reaches the age of 65. However, Mr O'Sullivan said they will look at exceptions to sometimes extend this beyond the age of 65.
Permanent TSB said it has E 1.7bn set aside in a stock of provisions for possible debt write downs of a E17.7bn loan book (almost 10pc).