Vulture funds and agents are taking hold in Ireland, shows Central Bank figures
Dublin: Vulture funds and their agents have strengthened their position in Ireland, Central Bank figures show. According to these figures, they have tightened their grip on taking over defaulted residential mortgages. International vulture funds have seized mortgages on thousands of defaulted homes from banks. The ban on evictions is being lifted from today. Vulture capitalists have stepped in.
By the last quarter of last year, 77% of long-overdue residential mortgages were in the hands of vulture firms, the bank says. This represents a 3% increase over the previous quarter.
The number of loan defaulters rose sharply in the last quarter of 2022 to the highest level in a decade. 2,326 people defaulted on their loan repayments, but the number of long-term mortgage defaulters has decreased, the figures show.
The central bank reported in December that 47,000 mortgages had been in arrears for more than a year and 5,526 had been in arrears for more than ten years. In addition, the figures show a slight decrease in this number when compared to the third quarter of last year. In the third quarter, it was 5,874. According to the central bank, 88% of mortgage holders restructured their loans and made monthly payments.
The bank report also says that consumers are struggling to repay their mortgage amid challenges including rising interest rates. Since last summer, the European Central Bank (ECB) has raised interest rates in order to control inflation. Three and a half percent were added to the total.
In Ireland, there are over 700,000 residential mortgages. About 200,000 of these are Tracker customers. They will be the most affected by the interest rate increase.
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