Between 2,000 and 4,000 could be repossessed by Permanent TSB due to the mortgage crisis.

Speaking to the Oireachtas Finance Committee, the bank said the repossessions would mostly consist of buy-to-let homes and some family homes.

Last year, the bank repossessed just 60 homes, but within the last three months it has started legal proceedings against 1,500 customers.

Permanent TSB isn't the only bank appearing before the committee, with the Ulster Bank and AIB also appearing. The hearings are focused on mortgage arrears and the resolution process being offered by the banks to those who are in mortgage trouble.

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Jeremy Masding, Permanent TSB's chief executive, said that the bank had lent €105m in mortgages in the three months to the end of March this year. While, by the end of January this year, the bank accounted for 20% of mortgage approvals in the market.

According to reports, Fianna Fáil's Michael McGrath questioned Masding on the legal proceedings being pursued by PTSB against mortgage customers. He claimed that PTSB has 10,000 people possibly losing their home, but the bank has offered no mortgage to rent arrangements to date.

In response, Mr O'Sullivan said he would caution against saying 10,000 people are in danger of losing their homes.

(JP/MH)