One in 10 home­own­ers are still be­hind on mort­gage pay­ments

The Irish Times - Business - - BUSINESS NEWS - FIONA RED­DAN

About one in 10 fam­ily home­own­ers are be­hind with re­pay­ments on their mort­gage, new fig­ures from the Cen­tral Bank show, with fi­nanc­ing on al­most one in five in­vest­ment prop­er­ties also in ar­rears.

The fig­ures come as the Govern­ment fi­nalises its mort­gage to rent scheme, which is ex­pected to keep thou­sands of fam­i­lies cur­rently un­der threat of evic­tion in their homes.

Ac­cord­ing to fig­ures pub­lished yes­ter­day from the Cen­tral Bank, mort­gage ar­rears con­tin­ued to fall in the sec­ond quar­ter of the year.

A to­tal of 73,706 fam­ily home mort­gages (10 per cent of the to­tal) were in ar­rears at end-June, a de­cline of 3.6 per cent rel­a­tive to March 2017.

The num­ber of fam­ily homes in ar­rears over 90 days at the end of June was 51,750, rep­re­sent­ing 7 per cent of to­tal mort­gages.

The trend is down­wards how­ever; the quar­ter-on-quar­ter de­cline was 2.5 per cent, while this marks the fif­teenth con­sec­u­tive de­cline in the num­ber of fam­ily home mort­gages in ar­rears over 90 days.

A sig­nif­i­cant num­ber of fam­ily home mort­gages have also been re­struc­tured, with the fig­ure as of end-June of 120,398. Of th­ese, 87 per cent were deemed to be meet­ing the terms of their cur­rent re­struc­ture ar­range­ment, up slightly from the pre­vi­ous quar­ter.

In­vest­ment side

On the in­vest­ment side, some 19 per cent of buy to let mort­gages were in ar­rears as of end-June, with those in ar­rears over 90 days de­creas­ing by 1.9 per cent dur­ing the sec­ond quar­ter.

Some 14,000 in­vest­ment mort­gages were in ar­rears over 720 days, with an out­stand­ing bal­ance of €4.1 bil­lion, equiv­a­lent to 18 per cent of the to­tal out­stand­ing bal­ance on all BTL mort­gage ac­counts.

Non-bank en­tites, such as pri­vate eq­uity funds, now hold 48,199 mort­gage ac­counts, ac­count­ing for 6.5 per cent of all mort­gages in Ire­land, and five per cent of fam­ily homes. Of this num­ber, 63 per cent are held by reg­u­lated re­tail credit firms, with the re­main­der held by un­reg­u­lated loan own­ers. Some 41 per cent of fam­ily home mort­gages held by un­reg­u­lated loan own­ers are in ar­rears of over 720 days, com­pared to 17 per cent of ac­counts held by re­tail credit firms.

Dur­ing the quar­ter, 340 fam­ily homes were taken into possses­sion by lenders, either on foot of a court or­der, or vol­un­tary sur­ren­der or aban­don­ment, down from 370 prop­er­ties in the prvi­ous quar­ter. At the end of the sec­ond quar­ter, there were 1,739 fam­ily homes in lenders’ pos­ses­sion, down from 1,740 at the start.

Newspapers in English

Newspapers from Ireland

© PressReader. All rights reserved.