# Which lender repossesses at ten times the average rate?



## Brendan Burgess (22 Jun 2016)

One small lender had 93 repossessions which is about 3.5% of their loans.  The average for the mortgage lenders as a whole is 0.3%. 

Anyone able to guess the name of that lender? 

Brendan


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## Boyd (22 Jun 2016)

Haven?


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## Monbretia (22 Jun 2016)

Start mortgages?  or whatever name they might be going by now.


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## Brendan Burgess (22 Jun 2016)

username123 said:


> Haven?



Not Haven


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## Brendan Burgess (22 Jun 2016)

Monbretia said:


> Start mortgages?  or whatever name they might be going by now.



Not Start either.


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## cremeegg (22 Jun 2016)

ACC perhaps ?


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## Brendan Burgess (22 Jun 2016)

cremeegg said:


> ACC perhaps ?



Not ACC, but you are closer than the other two suggestions.


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## Garry Manning (22 Jun 2016)

Brendan Burgess said:


> Not ACC, but you are closer than the other two suggestions.


Danske


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## Brendan Burgess (22 Jun 2016)

Garry Manning said:


> Danske



You are moving further away from the right answer.


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## Brendan Burgess (22 Jun 2016)

OK, another clue.

They charge a mortgage rate of 2.3%

Brendan


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## JohnJay (22 Jun 2016)

County Councils?


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## Brendan Burgess (22 Jun 2016)

Well done JJ. 

Dublin City Council to be exact. 

http://economic-incentives.blogspot.ie/

You should skip to the last three paragraphs for the conclusions 

"Thus the 93 repossessions by DCC represenent about 3.5 per cent of the households they have lent to while the repossessions by banks and building socities are about 0.3 per cent of the households they have lent to.  As a percentage of the number of households they have lent to, the repossession rate of DCC is ten times greater than that of banks and building societies.

....

You can look for mentions of local authority repossessions in the report issued last week by the Housing and Homelessness Committee. You won’t find any.  But you will find a recommendation for a moratorium on repossessions. Go figure.

Brendan


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## demoivre (22 Jun 2016)

Dublin City Council.   

(Post crossed with Brendan )


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## Monbretia (22 Jun 2016)

Wouldn't even have thought of a county council as the answer!


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## Brendan Burgess (22 Jun 2016)

Obviously the Committee on Homelessness and Housing didn't think of them either. 

Brendan


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## Brendan Burgess (22 Jun 2016)

We shouldn't be that surprised. The so-called "Shared Ownership" was the ultimate sub-prime lending.
Huge multiples of salary and no deposit required.

Here are some examples

7 times Loan to Income No deposit, salary of €24k, Approved by Cork County Council to buy a house for €170k 

6.5 times loan to income No deposit, €241K mortgage and €37k salary 
House worth €340k bought under Affordable Housing scheme

Part-time work, Loan Parents Allowance and Family Income Supplement - approved for Affordable home of €275k- amount of shared ownership not specified

Wexfordguy  sums it up well: 

"the difficulty in securing a mortage through conventional means that would cover a property in any location and its obvious shared ownership is the way to go.For example,for a deposit of 1.300 euro you can be lent up to 270,000 based on an average income.You have the option to buy out the corporation's share of the property after two years and obviously this will cost a bit more than your existing outgoings.The point about shared ownership is that its a FOOTHOLD on the property ladder that people on normal incomes would not normally be able to afford.In addition,any profit generated by the sale of the property is yours,unlike the affordable housing scheme.I purchased four years ago under shared ownership and its the best thing i ever did,i would recommend it to anybody."


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## Delboy (22 Jun 2016)

Can't dig them out right now but aren't the rent arrears stats for the Councils very high? So it wouldn't surprise to see that any ownership schemes they entered into having similar results


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## JohnJay (22 Jun 2016)

I wonder what is the % of forced vs voluntary repossessions for DCC?

I think a lot of the shared ownership/affordable housing owners got badly hit during the recession. Maybe a lot of them just gave the keys back?


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