ptsb selling 925 more non-performing home loans

[Brendan Burgess]

PTSB to sell €348m of non-performing mortgages

PTSB is to sell a portfolio of non-performing mortgages worth €348m to a consortium made up of credit servicing firm Mars Capital and funds managed or advised by US based asset manager, Apollo Global Management.

www.rte.ie

925 of the mortgages are on private homes, with 319 on buy-to-let properties.

83% of the loans are in arrears with the average balance owed in arrears of €71,000 and the average time in arrears is 22 months.

"The remainder of the portfolio is classified as non-performing by reference to regulatory guidelines and definitions," PTSB said in a statement.

"Typically, these are interest only or part capital and interest loans where the borrower and the bank have been unable to agree a credible capital repayment plan which will ensure the repayment of the outstanding balance (often the original amount which was borrowed) at the end of the agreed loan term."

The bank added that 85% of the loans on private homes are in arrears with an average arrears balance of around €40,000.

 

[Brendan Burgess]

"Additionally, customers will continue to have the right to avail of PTSB’s mortgage products, interest rates and services up to the point of transfer, subject to applicability and/or terms and conditions," Mr Crowley said.

The bank is set to write to customers in the coming days to inform them of the changes.

If you get this letter and you have a non-tracker loan, you should review your options. Mars can charge you what they like if you are on a variable rate or when your fixed rate ends, if you are on a fixed rate.

If you have a variable rate loan, it might be worth fixing now for a long period.

If you have a fixed rate mortgage, it might be worth breaking out of it now, and refixing for a longer period.

 

[CorkHome2022]

This is the Ninth Sale by PTSB to various funds , they cannot have much Celtic Tiger era distressed mortgages on their balance sheet now .

 

[Protocol]

"While 78% of the buy to lets are in arrears with an average arrears balance of €186,000."

Given the massive rents in 2024, how can any landlord be in arrears?

Is it something to do with controlled rents in RPZ?

 

[Brendan Burgess]

"While 78% of the buy to lets are in arrears with an average arrears balance of €186,000."

That is hard to understand

I wonder if they were interest-only loans. And so technically, the entire loan is in arrears as it's past the end date for the loan.

Whatever about family homes, it's crazy that a bank can't quickly get possession of a buy to let.

Brendan