gnf_ireland
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Taken from Richie's attendance at the Oireachtas Committee notes from Brendan
>>Burke
>>Slide 38 - borrowers 1358 over 2 years in arrears. The majority will require social housing. Could you not do a write-down?
>>Boucher /McLoughlin
>>It's 1.8% of our mortgages compared to 5.5% for the industry
>>726 are paying nothing at all
>>267 are paying less than 50%
>>Their average contractual mortgage payment is €926 vs €1,060 for rent
>>If they get social housing, they have to pay something. They are paying us nothing.
Is it time for a mature discussion on long term arrears? There are 1358 customers with BoI alone who are in arrears for over 2 years. 726 (over 50%) are paying nothing at all to the bank currently, and a further 20% paying less than 50% their monthly commitment.
For BoI it is 1.8% as opposed to industry of 5.5% - so the numbers are probably larger elsewhere !
Why should the banks write off large elements of their mortgage? What is in it for the bank? Unless they are in complete negative equity or in bankruptcy proceedings, I don't see why the bank would do this? Surely we all accept that 2 years paying nothing is unreasonable?
The 27% who are paying >50% may have a sustainable mortgage assuming a number of factors, and maybe the bank should try negotiate a bit easier on those to come up with more reasonable solutions. But maybe if there was a way to address the 70% easier, the bank would be more favourable to this bunch (here is me hoping)
But the other 73% - surely its time to accept that the banks should no longer be covering these losses and if the government wants to come up with some social housing strategy in partnership with the bank then the government must be willing to pay for it.
At the moment, the non-tracker mortgage holders are paying for these mortgages. Maybe its time that came to an end?
>>Burke
>>Slide 38 - borrowers 1358 over 2 years in arrears. The majority will require social housing. Could you not do a write-down?
>>Boucher /McLoughlin
>>It's 1.8% of our mortgages compared to 5.5% for the industry
>>726 are paying nothing at all
>>267 are paying less than 50%
>>Their average contractual mortgage payment is €926 vs €1,060 for rent
>>If they get social housing, they have to pay something. They are paying us nothing.
Is it time for a mature discussion on long term arrears? There are 1358 customers with BoI alone who are in arrears for over 2 years. 726 (over 50%) are paying nothing at all to the bank currently, and a further 20% paying less than 50% their monthly commitment.
For BoI it is 1.8% as opposed to industry of 5.5% - so the numbers are probably larger elsewhere !
Why should the banks write off large elements of their mortgage? What is in it for the bank? Unless they are in complete negative equity or in bankruptcy proceedings, I don't see why the bank would do this? Surely we all accept that 2 years paying nothing is unreasonable?
The 27% who are paying >50% may have a sustainable mortgage assuming a number of factors, and maybe the bank should try negotiate a bit easier on those to come up with more reasonable solutions. But maybe if there was a way to address the 70% easier, the bank would be more favourable to this bunch (here is me hoping)
But the other 73% - surely its time to accept that the banks should no longer be covering these losses and if the government wants to come up with some social housing strategy in partnership with the bank then the government must be willing to pay for it.
At the moment, the non-tracker mortgage holders are paying for these mortgages. Maybe its time that came to an end?