AIB has sold off a portfolio of mortgage loans in arrears to a Galway-based company, Everyday Finance. 

The Bank said the portfolio comprised 620 principal dwelling home mortgages, 95% of which first went into default over five years ago. 

The portfolio is reported to have had a book value of €150m but the Bank did not disclose what discount was applied for the sale. 

It is understood the sale had the approval of both the Central Bank and the Department of Finance. 

Everyday Finance is part of a consortium of credit management firms called the Home Solutions Initiative. It was licensed by the Department of Housing in 2018 to operate the Mortgage-to-Rent scheme. 

In a statement this afternoon, Home Solutions Initiative welcomed the sale. It says its member firms offer a range of solutions 'to help customers address their mortgage difficulties' with the aim 'of helping customers remain in their homes.'

The AIB customers involved will be informed by letter of the sale. They will still be covered by the Central Bank's consumer protection codes and regulations. The Bank says customers do not need to take any action as a result of today's announcement.