Permanent TSB sells further tranche of nearly 2,000 mortgages to vulture fund

Permanent TSB sells further tranche of nearly 2,000 mortgages to vulture fund

Permanent TSB has reached agreement to sell a further tranche of non-performing mortgages to a vulture fund, having hinted earlier in the year that more sales were likely.

The bank has agreed to sell nearly 2,000 mortgages - the vast bulk being home mortgages and just over 500 being buy-to-let mortgages - with a net book value of €274m, to Start Mortgages, an affiliate of vulture fund Lone Star Funds.

Permanent TSB sold off more than 16,000 problem mortgages via two controversial sales last year, reducing the percentage of non-performing loans on its books from 26% to 10%. This sale, it said, will bring that percentage down to 7%, much closer to the European average of just over 3%.

“It is important to note all customers will continue to be afforded existing regulatory protections after the transfer and that Start Mortgages is required to honour the terms and conditions of the Restructure Agreements or Alternative Repayment Arrangements in place for customers included in this sale," Permanent TSB chief executive Jeremy Masding said.

Back in May, Mr Masding hinted that the bank would look at further bad loan sales; saying after the bank's agm that more would be needed to be done to further reduce the level of problem loans on PTSB's books.

"We have to consider further transactions, but there's nothing planned or in the pipeline. But, we've got to get the ratio down to make the bank safer. I wouldn't rule anything in and I wouldn't rule anything out," he said in May.

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