Central Bank arrears stats Quarter 3

[Bronte]

http://www.irishexaminer.com/busine...ars-figures-should-worry-us-a-lot-434965.html

Worse, given a split mortgage will involve a lower monthly payment than the borrower undertook, one in 20 (close to 1,400) split mortgages are already failing to meet the terms of the new arrangement.

The number of restructured accounts not currently meeting the terms of the arrangement is over 15,000, or one in eight.

Given that the Central Bank is responsible for monitoring the sustainability of mortgage arrears solutions, we should expect it to carry out a proper investigation into the failure rate.

Question: Does this mean that the 'solutions' are not working?

 

[Brendan Burgess]

Here is my summary

Legal proceedings issued

27,000 in arrears over two years and only 420 of them lost ownership

27,000 in arrears over two years, and only about 12,000 repossession proceedings in the courts.

Most of these are paying nothing at all.
Some are paying something, but are not engaging with the bank.
A few are paying a fair bit, but they have huge unsustainable mortgages and should move on.

The 270,000 or so borrowers with non-tracker mortgages who do pay their mortgages, are paying for these people as well through a mortgage rate which is about 1.5% higher than it needs to be.

It's time we told borrowers that if they do not pay their mortgages, or engage with the bank or attend court, they will lose their home quickly.

Brendan

 

[Bronte]

Well BB you're not going to be very popular saying that. Only last week on here one poster who had left the family home two years ago was upset that I suggest they move on.

I would have thought with the upturn in the economy and increasing employment that some of those paying nothing would have been able to start paying again. But maybe the arrears are so bad they see no point.

Also I've seen no article in any of the media highlighting how many people are not paying anything and not engaging at all.

 

[Brendan Burgess]

I've seen no article in any of the media highlighting how many people are not paying anything and not engaging at all.

I said it in a prerecorded interview for the 9 pm RTE News last night that there are too few repossessions. But they chose to use a piece where I pointed out that although there were 400 repos and surrenders, there were 7,000 mortgages rescheduled and that anyone who paid something and showed up in court would not lose their home.

Brendan