Permanent TSB has reduced it’s portfolio of non-performing mortgages to 10 per cent of their peak levels it has been reported. The bank has offered a total of 19,000 resolution strategies to customers with a total of 15,700 accepted.
The bank said in a statement that non-performing home loan and buy-to-let mortgages are falling across both early and late arrears. At the end of April this year, PTSB’s internal bad bank, the Asset Management Unit, had engaged with over 80 per cent of struggling customers, with over 2/3rds receiving so called ‘sustainable treatments’.
In this morning’s statement, the bank urged “the minority of our long-term arrears customers who have not yet engaged…to do so, as it is our clear preference to restructure a loan, where appropriate, rather than resort to legal action.”
PTSB said that its approval rate for mortgages increased by 80 per cent at the end of April compared to the same month last year. Market share for new mortgages stands at around 13 per cent, up from a low of 1.6 per cent at the end of 2012.
However there was no mention of the level of mortgage draw-downs. The bank alluded to the ongoing process of selling its commercial property loan book, which is reportedly advancing with several international equity players, including Lone Star, eyeing the portfolio.
It said: “The group is actively exploring disposal opportunities for these loans.”