PTSB rejects criticism of buy-to-let loans

Monday 09 December 2013 21.22
Permanent TSB is offering products with interest rates based on the size of the deposit
Permanent TSB is offering products with interest rates based on the size of the deposit

Permanent TSB has rejected suggestions it is squeezing family homebuyers out of the market by launching a range of new products aimed at the buy-to-let sector.

The bank is offering a range of products with interest rates based on the size of the deposit that the buyer is bringing to the transaction.

It is also offering a new product to Irish people living overseas who wish to invest in property in Ireland.

PTSB Head of Mortgages Ger Mitchell said investors were looking for a very different type of property to the type being sought by those looking to purchase a family home.

Speaking on RTÉ's Morning Ireland, he said: "Investors are already active in the market.

"There's a very healthy rental market with 470,000 people in rental accommodation at the moment. Investors are typically looking at purchasing apartments or duplexes".

He acknowledged that there would be a cohort of overseas buyers who would look to purchase family homes with a view to coming back to live in Ireland.

Mr Mitchell rejected suggestions that the bank was adding to the mortgage arrears problem, which is most acute in the buy-to-let sector.

"This has been a significant problem for people who bought at the top of the market, but there has been a considerable correction in house prices.

"There are a lot of suitable properties for investment available at a suitable price," Mr Mitchell said.