Brendan Burgess
Founder
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The Central Bank issued its [broken link removed] figures yesterday, so it’s a good time to review what happened in 2010. Let’s look at repossessions first.
Repossessions
Repossessions on foot of a court order during 2010|102
Voluntarily surrendered or abandoned|262
Total|364 It is estimated that around 40% of these are from the sub-prime lenders who account for around 2% of the mortgages. So for mainstream lenders, I estimate the figures as follows:
Repossessions by mainstream lenders during 2010|60
Total number of mainstream mortgages|730,000
Chance of being repossessed by a mainstream lender in 2010| <1:10,000 This presumably will rise over the coming years.
Arrears and restructured
Arrears 91 – 180 days|13,170|1.7% of mortgages
arrears >180 days|31,338|4% of mortgages
Restructured and not in arrears|35205|4.5% of mortgages
Total |79,713|10.2%
Total mortgage accounts|786,000
What does restructured mean?
Paying less than interest only| 7,912
payment moratorium|2,569
Total|10,481 The rest are paying at least the interest, if I understand the figures correctly:
Reduced payment but more than interest|8,887
Term extension|7,226
Arrears capitalization|7,032
Interest only| 22,701
Capitalization and interest only|2,876
Other |26
Total| 48,748 Only around 20% of the restructured mortgages are paying less than the interest on their mortgages.
Where are those in receipt of Mortgage Interest Supplement?
Around 18,500 unemployed people receive mortgage interest supplement which pays (almost all)the interest on their mortgage. They are presumably included in the above figures:
In arrears - because they are not paying the capital
Interest only - because they have agreed a restructure with their lender
Repossessions
Voluntarily surrendered or abandoned|262
Total|364
Total number of mainstream mortgages|730,000
Chance of being repossessed by a mainstream lender in 2010| <1:10,000
Arrears and restructured
arrears >180 days|31,338|4% of mortgages
Restructured and not in arrears|35205|4.5% of mortgages
Total |79,713|10.2%
Total mortgage accounts|786,000
What does restructured mean?
payment moratorium|2,569
Total|10,481
Term extension|7,226
Arrears capitalization|7,032
Interest only| 22,701
Capitalization and interest only|2,876
Other |26
Total| 48,748
Where are those in receipt of Mortgage Interest Supplement?
Around 18,500 unemployed people receive mortgage interest supplement which pays (almost all)the interest on their mortgage. They are presumably included in the above figures:
In arrears - because they are not paying the capital
Interest only - because they have agreed a restructure with their lender