An Irish bank is writing off the debt of some of its buy-to-let mortgage customers.
RTE reports that Permanent TSB has been contacting some of its landlord customers who are in arrears asking them if they will sell their property to the bank.
The bank says that customers who agree to a “voluntary surrender” will subsequently have any debt that remains on the mortgage after it has been sold, written off and ‘will not seek any further repayment by the borrowers in respect of the BTL mortgage.’
The move comes after a detailed review of the bank’s non-performing loans and only certain BTL mortgages qualify for the deal.
Permanent TSB is 75 per cent owned by the Irish State and RTE reports that in July, the bank had said the non-performing loans on its books was “unsustainably high”, with bad debts accounting for 28 per cent of its loans.