Business Irish

Sunday 19 November 2017

15,400 PTSB mortgage-holders now in arrears

MORTGAGES

PERMANENT TSB boss David Guinane yesterday admitted that he was "surprised" at the deterioration in the mortgage market since the first quarter of the year, as the percentage of the bank's customers in arrears shot up to 8.8pc.

The news means that 15,400 of Permanent TSB's 175,000 customers have not paid their mortgage for more than three months.

The number of arrears customers is up 3,500 since the end of December, when 6.8pc of accounts were in the red by at least 90 days.

The end of June figure for owner-occupier mortgages is "below 8.5pc" while "over 9pc" of buy-to-let mortgages have been in arrears for more than three months, according to a note from analysts Davy.

Asked when arrears were likely to peak, Irish Life & Permanent chief Kevin Murphy said it was "difficult to see them peaking before the middle of next year".

Mr Guinane said that the worsening trend had begun in April and had continued on into July and August.

Against the backdrop of customers facing increasing difficulties in paying their mortgages, Permanent TSB has restructured more than 10,500 home loans, including 9,500 that are "performing" and 1,200 cases that are in arrears.

The bank closed the half-year with a stock of 200 repossessed properties, including 80 that were repossessed this year. The 80 includes 70 voluntary surrenders or abandonments and 10 forced actions "at the end of a very long process", Mr Guinane said.

"We're not in the business of repossessions nor do we intend to be," he added.

Permanent TSB's figures come days after the Central Bank published data showing 55,000 mortgage holders across the country were more than 90 days behind on home-loan payments at the end of June.

The data puts the nationwide arrears level at 7.2pc, up from 6.3pc at the end of 2010.

Laura Noonan

Indo Business

Promoted Links

Business Newsletter

Read the leading stories from the world of Business.

Promoted Links

Also in Business