Permanent TSB has agreed to sell another portfolio of non-performing loans to retail credit firm Start Mortgages, in co-operation with LSF Irish Holdings.

Both companies are affiliates of Lone Star Funds.

The portfolio, which is made up of 1,422 home mortgages and 510 buy-to-let mortgages, has a net book value of €274m.

Following the completion of this sale, Permanent TSB said its non-performing loan ratio will fall from about 10% to about 7%.

This is still above the above the European average but down sharply from a rate of 26% at the start of 2018.

The bank said that all of the loans in the portfolio as categorised as non-performing.

Start Mortgages will being servicing the loans early next year.

Permanent TSB said it will write to all affected customers with information related to the change in the ownership and servicing of their loans. 

It also stressed that all loans will continue to be covered by the protections of the relevant Central Bank consumer codes and regulations. 

"It is important to note all customers will continue to be afforded existing regulatory protections after the transfer and that Start Mortgages is required to honour the terms and conditions of the restructure agreements or alternative repayment arrangements in place for customers included in this sale," commented Jeremy Masding, PTSB's chief executive said.

The bank completed two controversial loan sales - Projects Glas and Glenbeigh - which related to more than 16,000 mortgages last year.