Central Bank report on interest only mortgages

[Brendan Burgess]

It is possible that the 20% in arrears who were paying nothing, were the people to whom the Banks issued legal letters to reach their solution targets. I recall some of the robust comment at the time, but if people were paying nothing, something had to be done to jolt people to the reality.

Yes, the banks have repeatedly stressed that most of the letters issued were to people who were not engaging. Some engage immediately and others resume full capital and interest payments. But many just keep their head firmly buried in the sand.

 

[paddy19]

"The rental income exceeds the interest payment comfortably, so the only explanation is that they are strategic defaulters."

There are alternative explanations than "strategic defaulter".

Other property in Leitrim bringing in zero rent.
Lost job, no other income.

 

[dereko1969]

"The rental income exceeds the interest payment comfortably, so the only explanation is that they are strategic defaulters."

There are alternative explanations than "strategic defaulter".

Other property in Leitrim bringing in zero rent.
Lost job, no other income.

You're not quoting Brendan fully, he was talking about properties in Dublin where the rent is significantly exceeding the interest payments.

So why hasn't your Leitrim property been repossessed? Have you engaged with the Bank?