Permanent TSB is to establish a Mortgage Product Review Group to assess the bank’s mortgage product suite and establish if there are instances where the contractual terms and conditions attached to mortgage accounts are not being honoured by the bank.

Ger Mitchell, a member of the bank’s executive committee, will lead the MPRG.

He will be supported by senior manager Gillian O'Shea, together with a bank team and independent external conduct risk and product design experts.

The establishment of the MPRG follows the identification in July of approximately 1,100 mortgage customers at the bank who, following an investigation by the Central Bank of Ireland, were found to have lost a contractual right to a tracker rate mortgage.

A Central Bank investigation revealed PTSB failed to inform certain customers of the consequences of their decisions to break early from a fixed rate or discounted tracker period, which saw them lose their contractual right to be offered a tracker rate in the future.

It said PTSB also failed to inform some other customers of their right to be offered a tracker rate at the end of any fixed rate period.

The affected customers are being compensated by the bank.

CEO of Permanent TSB Jeremy Masding, who made the announcement, said: "We have no expectation that there are widespread, systemic issues but we think it is appropriate – given what we learned earlier this summer – that we undertake a thorough review of this nature at this time.

"If through this exercise we uncover any issues then we will contact customers and take whatever steps are necessary to correct their positions as quickly as possible," he added.

The bank has advised that customers do not need to take any steps at this point in time and the bank will contact them in the event that any issue in respect of their mortgage has been identified.