I can inform the Deputy that the State supported banks have provided me with the following information on their treatment of the warehoused portion of a split mortgage. The treatment of the warehouse portion of a split mortgage is a matter for the Central Bank.
AIB
I am informed by AIB that the warehoused portion of the split mortgage is deferred – i.e. no repayments are made for an agreed amount of time and there will be no interest charged.
Bank of Ireland
I am informed by Bank of Ireland that it provides a split mortgage option as a suitable sustainable forbearance solution for certain Borrowers under MARP. This option involves part of the mortgage being repaid on an interest-only basis at the customer’s prevailing product interest rate, with capital on this element repaid from an identified source at the end of the mortgage term.
Permanent TSB
Permanent TSB has informed me that to date it has applied a nominal rate of interest (1%) to the warehoused portion of the split mortgage. Permanent TSB informs me that it is finalising preparations to move to an interest free approach to the warehouse and expects this to be available in the coming weeks.