Buy to Let

Permanent TSB sees up to 2,000 customers moving to mortgage-to-rent

Permanent TSB expects up to 2,000 troubled home loan holders to avail of a mortgage-to-rent scheme it is working on with a “preferred partner” and set to be launched in the coming months, according to the bank’s director of operations, Shane O’Sullivan.

Speaking at an Oireachtas finance committee meeting, Mr O’Sullivan also said that the bank has identified up to 1,000 struggling buy-to-let borrowers to avail of a recently-announced plan to offer to forgive any arrears or shortfalls on a sale of a property if they agree to a voluntary surrender.

So far, the bank has written to 600 of these customers and it expects “a lot” of these to take up the offer.

This week, AIB became the first Irish bank to launch an enhanced mortgage-to-rent scheme following a move by the Government this year to modify a previous plan that had limited take-up in recent years.

The bank is working with the debtors advocate David Hall’s Irish Mortgage Holders Organisation (IMHO) and new iCare Housing company.

Under the scheme, AIB will give iCare €100 million to buy properties, which will be rented back to families who forfeit ownership of the homes, and who qualify for social housing, in return for a long-term lease.

Under the plan, the customer’s residual mortgage debt, following the property sale, is fully written off.

Mr O’Sullivan didn’t identify PTSB’s “preferred partner” for the mortgage-to-rent blueprint it is working on.

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