Homeowners in arrears must pay 20% debt shortfall after house sale

Permanent TSB customers in mortgage arrears who agree to a voluntary sale of their home will have to pay 20% of the shortfall of what they owe before they can qualify for a debt write-down.

Speaking at the release of the State-owned bank’s results for the first six months of the year, chief executive Jeremy Masding said 500 customers had entered into this arrangement, having failed to agree a sustainable mortgage restructuring plan.

When PTSB has sold the house it will look for the customer to make up a minimum of 20% of the shortfall between the sales proceeds and the amount outstanding on the mortgage. This can be paid over 10 years, at which point the bank would consider a write-off of the balance.