Stephen Donnelly (Wicklow, Independent) | Oireachtas source

I welcome Mr. Masding and his team. I will pick up the split mortgage issue. I recognise the 0% rate on the shelf, which is a reasonable and welcome move from the bank. We have seen similar action from other banks except Bank of Ireland, which is pretending it has a split mortgage product but it is charging the market rate on the full amount. That is an exercise in deep cynicism.

My anecdotal evidence is that the figures seem to be moving in the right direction and I hope that what we are hearing comes from the edges, or the 1% of people falling through the cracks. We do not know that, and they might be the norm. I will read out an anonymised split mortgage offer relayed to me from a constituent at 9 a.m. this morning, and I ask the witnesses if they stand over it. The correspondence reads:

My wife and I are Permanent TSB customers currently experiencing difficulties with a shortfall of €400 [in capital and interest]. Permanent TSB has offered us a split mortgage which would reduce our payments by €140, including a five-year term extension. It has allowed us €10 per month for credit union and family loans and it wants us to default on the credit union and prioritise the mortgage. I explained that the credit union was being used to pay my college fees and if I default on that loan I will be unable to continue my studies. Permanent TSB replied that the situation was serious and the mortgage must take priority over everything.

I understand the difference between secured and non-secured credit, and typically, in banking, secured credit takes precedence. Would the bank stand over a case whereby enforcing the primacy of the secured credit would result in one of the borrowers having to leave a degree programme?