Permanent TSB customers who make additional lump-sum payments on their tracker mortgages will receive bonus payments of 10 per cent, the company said today.
The offer, available to residential, investment and commercial tracker mortgage holders, will run until June 17th, and will be reviewed when the bank has reached a ceiling of €500 million of additional repayments.
It is also open to customers who are currently in arrears and the bonus payment will apply to any payments made once the arrears have been cleared.
David Guinane, chief executive of Irish Life and Permanent's banking unit Permanent TSB, said the lender has no plans for "blanket" mortgage debt forgiveness.
Debt forgiveness is used sparingly by banks in dealing with loans that are in trouble, Mr Guinane told RTÉ Radio.
He said that there is a 90 per cent correlation between instances of home loan arrears and unemployment.
Under the terms of the EU/IMF bailout deal, Irish banks have been directed by the central bank to shrink their balance sheets by the end of 2013.