German bank buys mortgages
AROUND 680 buy-to-let mortgages which are in arrears have been sold to Germany's biggest bank by Danske Bank, as the Danish lender withdraws from Ireland.
The former National Irish Bank mortgages were sold by Copenhagen-based Danske Bank to Frankfurt-based Deutsche Bank, the Bloomberg news agency reported yesterday. The mortgages had been put up for sale some time ago with a price tag of around €100m.
Around 60pc of the buy-to-lets are in the greater Dublin area while the remaining 40pc are in other urban centres.
The mortgage holders who have fallen behind with mortgage payments will now have to deal with a new bank that has no high-street presence. Neither bank would comment on the report yesterday.
Deutsche Bank appears to have outbid two other groups to buy the 680-strong portfolio dubbed Project Circle.
Danske is selling off personal and small business banking activities and leaving the Republic just as other investment funds pile in to take advantage of the rising property market.