head 3

Rise in long-term mortgage defaults in Ireland

Dublin: A big rise in long-term mortgage defaults in Ireland. According to Central Bank data, more than half of the country’s long-term borrowers have not repaid the amount for two years. Although the data shows that the number of such people is decreasing, it is estimated that non-repayment by 55% of the borrowers is not good for the financial sector.

The average outstanding balance on unpaid accounts was €2,40,410 last year. According to statistics, all these were outstanding for more than five years. 22% of the loans were repaid last year. But they paid less than 50% of the amount due.

How do banks not fail?

Criticism has been raised against these figures from many quarters. Padraic Kissane, a financial adviser and member of the Irish Banking Culture Board, said it was shocking that people had not paid anything towards their mortgage for ten years. These people are taking advantage of the system. Even going to court against them would not help. He said the courts are very lenient with defaulters. The inability to recover the property is causing a major crisis, according to Ulster Bank, and it is not surprising that banks such as KBC are leaving the market.

Arrears, the lowest ever…

However, figures show that the number of non-cooperative borrowers has decreased from 16,000 at the end of last year to 15,000. Long-term mortgage defaulters are also on the decline. There was a 12% decrease in the year to June 2022.

“This is the first time that long-term mortgage arrears have fallen below 25,000 accounts since the central bank began collecting data on mortgage arrears,” said Central Bank Consumer Protection Director Colm Kincaid.

Irish Samachar English News

Kindly click the link below to join WhatsApp group chat to get important news and breaking news from Irish Samachar.


Comments are closed.