ECB wants to phase out loss making trackers

The ECB would like the Government to phase out loss-making tracker mortgages over a five-year period in an effort to return the banks to profitability.

However, this proposal is not being considered by the Government, according to a Department of Finance spokesperson who said the solution to the tracker mortgage problem is finding an appropriate funding model.

Bank of Ireland, AIB, Permanent TSB and Ulster Bank have roughly €70bn of tracker mortgages between them which makes up two thirds of their mortgage books.