Bank of Ireland is set to appoint rent receivers in a bid to clamp down on buy-to-let investors who “divert” their property income away from the bank.
Buy-to-let mortgages have been the worst performing for a series of banks, with Bank of Ireland’s buy-to-let book valued at €7 billion.
Around €3 billion of that was described by bank chief executive Richie Boucher as “problematic” but he believed a number of those failing to meet their repayments were engaged in a “diversion of rental income that should be coming to the bank.”
He said they would look to appoint rent receivers to deal with the problem.
Mr Boucher also said that the bank was not engaged in government proposals to shift tens of billions of trackers away from Permanent TSB and AIB.