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A. Permanent TSB contracts have special conditions which allow them, at their own discretion, change the terms of your mortgage.
Special Condition clause number 7, which I reproduce for you here, gives Permanent TSB the discretion to change people from interest-only to capital repayment mortgages.
Clause 7: “Permanent tsb reserves the right to review the deferral of the repayment of principal at any time during the term of the loan, including the first three years of the term and may require the applicant to cease the interest-only repayment an drequire th repayment of principal and interest and the applicant will immediately arrange to pay the revised monthly repayment comprising the repayment of principal and interest calculated over the remaining term so that the principal and interest will be discharged within the existing term of the loan.”
It looks as if Permanent TSB are within their rights to do so. However a group of people in a similar situation to you are challenging the bank and solicitor Walter Odlum is hoping to take a test case to the High Court.
For more details check out this story