Permanent TSB has taken legal action against 1,600 mortgage holders

The country's largest mortgage lender Permanent TSB has said it has initiated legal proceedings against 1,600 mortgage holders.

The bank said the figure does not include the number of mortgage customers who have been sent warning letters of possible legal action.

They also said they have offered debt solutions to 26% of its mortgage holders in arrears, ahead of the Central Bank's 20% target.

Executives from the bank are attending the Oireachtas finance committee this morning.

The bank's managing director Shane O'Sullivan said the bank does not consider a legal letter as a "solution" to a mortgage problem.

Mr O'Sullivan said: "There can be letters sent by the bank that suggest that if the account is not kept up to date, or if the customer is not co-operating, that legal proceedings may commence.

"Those letters are not included. We have chosen to only count legal proceedings from the point that a solicitor is appointed."