Mortgage Arrears Rate Shows Need For PTSB To Cut High Interest Rates

Labour TD Kevin Humphreys said the figures rom the Central Bank showing that over 10% of mortgage holders are in arrears of 90 days or more shows clearly the need for Permanent TSB to cut the high standard variable rate (SVR) of interest that it is charging to mortgage customers.

He said: "At the bank AGM during the week, customers described themselves as being 'prisoners' of the bank, which has not passed on ECB rate cuts. This has left customers struggling to pay high interest bills, on what are otherwise sustainable loans.


"Following my request at the Joint Oireachtas Committee on Finance, Public Expenditure and Reform this week, it was decided that the Chief Executive Officer of Permanent TSB, Jeremy Masding will be invited to appear at a future meeting to discuss this issue, as part of the Banking module.

"This has been an on-going concern for some time. Some mortgage holders have seen their rates nearly double since 2009 whilst the ECB rate has declined in the same period from 1.5% to 1%. PTSB has over €22 billion of loss making tracker mortgages so it would appear it is using its SVR loan book to cover these loses.

"Whilst a 0.5% rate reduction was recently passed onto SVR owner occupiers, other mortgage holders in PTSB have not seen their rates reduced.

"It makes little sense that a state supported bank is charging such high interest rates that is making borrower repayments unviable, even when the mortgage holder is committed to repaying the loan."

(CD/GK)