Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

Mr. Masding said in his opening remarks that there is a three-year review in relation to the split mortgage arrangements but in the contracts and agreements that I have seen there is also a clause (i), which is very broad in nature, and which gives the bank the right to terminate the split mortgage agreement for such other reason as the bank in its discretion thinks fit, subject to applicable law. My reading of it is that the bank, or if it is replaced by a new loan owner, for example, a vulture fund, may for no reason whatsoever decide to terminate a split mortgage arrangement. I do not think Permanent TSB would do that if it were the loan owner and if the borrower is meeting the terms of the split mortgage but I think it is undeniable that if the split mortgage falls into the hands of a vulture fund, it may well take a different view entirely of the split mortgage agreement, particularly if there is equity in the property, for example.