PTSB cautious about legal warning figures

Permanent TSB has said it cannot estimate how many of 1,600 mortgage customers, who have received legal warnings from the bank over their arrears, risk having their homes repossessed.

The struggling bank — which is 99% owned by the State — revealed that 2,000 mortgage defaulters had already voluntarily agreed to the repossession or sale of their property.

PTSB bankers told the Oireachtas Finance Committee that 25,219 mortgage holders were more than 90 days in arrears at the end of last March.

However, PTSB said it had already offered some type of debt solution to 6,650 customers or 26% of all mortgage defaulters by June — exceeding the 20% target laid down by the Central Bank.

The figures include the quarter of all customers in arrears who have been issued with legal proceedings after the bank deemed they had provided no evidence to show they could afford or sustain repayments on their home loans.

Around 60% of the bank’s customers are on tracker mortgages, although PTSB chief executive, Jeremy Masding, said he wished to dispel the myth that all such loans were non-performing.

PTSB representatives were praised by members of the Oireachtas Finance Committee for providing the most comprehensive information of the four banks who appeared before them at public hearings.

So far this year 10,000 customers in arrears have been offered short-term solutions in the form of a moratorium or interest-only payment scheme.

The number of defaulters offered long-term debt solutions has increased from 5,000 in June to 9,000. These include 3,500 who have been offered split mortgages where up to 50% of the capital is warehoused at 0% interest.

Mr Masding said anyone on split mortgages would have their circumstances reviewed every three years.

The number of customers in arrears has doubled from 1,000 to 2,000 in the past two months.

However, PTSB declined to say how many additional legal proceedings have been issued since the 1,600 counted up to June.

Mr Masding revealed the bank had provided for possible write-offs of €2.5bn on its mortgage book worth €24.2bn. On Priory Hall residents, he committed to looking at a range of solution up to a possible write-down of loans.