PTSB agrees to scheme to allow defaulting customers stay in home

The deal with the IMHO and iCare requires customers to qualify for social housing

Permanent TSB. Photograph: Alan Betson

Permanent TSB. Photograph: Alan Betson

 

Permanent TSB (PTSB) has signed up to an initiative which aims to keep customers in mortgage difficulties in their own homes provided they qualify for social housing.

The agreement with the Irish Mortgage Holders Association (IMHO) and iCare, both of which are run by David Hall, will ultimately allow customers defaulting on their mortgage stay in their homes as long-term tenants of iCare housing.

iCare Housing was set up for the purpose of providing and managing social rented housing for customers eligible for the mortgage to rent scheme. Since its establishment last year, iCare agreed to purchase over 100 homes for families in mortgage arrears who are eligible for social housing.

The way the deal works is that iCare buys the property from PTSB, the bank writes off any residual debt linked to the property and the customer then becomes a long-term tenant of iCare in the same property. The customer then has the option to buy back their home at any time from iCare at the price the organisation paid for the property.

Jeremy Masding, the bank’s chief executive, said: “David Hall and the IMHO have built a compelling mortgage-to-rent solution which will be an important part of our response to customers in mortgage difficulties.

“This approach will also play a limited role in reducing our ratio of non-performing loans. We are delighted to work with David on this project. We believe it will make a real difference to the situation facing many customers.”

Unsustainable debt

“Today Permanent TSB has agreed to assist and work with us to help those who have been struggling with unsustainable mortgage debt for the last number of years. For Permanent TSB customers an option now exists, for those who qualify for mortgage to rent, to remain in their homes,” Mr Hall said.

“For people who are in trouble with their mortgage I would encourage them to contact us, free of charge. Solutions exist that allow families get their lives back and allow them stay in their home,” he added.

Those interested in the scheme still have to qualify under the mortgage to rent eligibility which provides that a property can’t be worth more than €365,000 for a house and €310,000 for an apartment in Dublin, Kildare, Meath Wicklow, Louth, Cork and Galway. The maximum value for a house in the rest of the country is €280,000.

Additionally, net household income can’t exceed between €25,000 and €35,000, depending what part of the country the person is in, while the value of capital assets can’t exceed €20,000.