FF's McGrath asks why PTSB's split-mortgage loans face sell-off, while AIB's do not

Fianna Fáil wants to know why AIB's split mortgages are classed as performing loans but Permanent TSB's are not.

With 4,300 mortgage holders facing the prospect of their loans being sold off to so-called vulture funds, the party's spokesperson on finance is calling on the Government to find a solution.

Deputy Michael McGrath said he wanted to know why Permanent TSB mortgage holders who are fully honouring the terms of the split mortgage agreement they have entered into with the bank are now looking at their loans being lined up for sale.

Hewas responding to a report in today’s The Sunday Times that European banking regulators are set to reaffirm their view that Permanent TSB’s split mortgages should be classed as non-performing loans – increasing pressure on the bank to sell them on.

Deputy McGrath commented: “We know that some 4,300 Permanent TSB mortgage holders are fully honouring the terms of the split mortgage agreement they have entered into with the bank and yet their loans are being lined up for sale in the same basket as loans where no repayment has been made for years. We need a clear explanation as why AIB’s split mortgages are classed as performing loans but Permanent TSB’s are not.

"The Government needs to find a solution to this matter. It is deeply unfair that customers who have followed the advice and entered into a restructuring agreement with their lender are now having their mortgages treated as bad loans and proposed for sale in this manner."

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