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NEW FIGURES published by the Central Bank show that 9.2 per cent of all domestic mortgages are now over three months in arrears – with the average mortgage holder in Ireland being €1,453 behind in their repayments.
By the end of December, 70,911 mortgage holders were more than 90 days behind on their repayments – with over €1.11 billion in loan repayments due on them, an average of €15,753 per affected household.
In 53,086 cases, the mortgages were more than six months in arrears – with just under 10 per cent of those mortgages, with an outstanding balance of €10.7 billion, due to be repaid but not yet done so.
It is likely that the €1,453 figure is actually higher, as the stats do not include arrears accrued on mortgages which are less than 90 days in arrears.
In both cases, the numbers were up on the previous statistics from the end of September, when 62,920 homes were three months in arrears and 46,371 were over 180 days behind on repayments.
At the end of 2011 there were 768,917 private residential mortgages in Ireland, with a total value of €113.5 billion.
74,379 mortgages had been restructured by the end of December, up by 4,644 on the previous quarter.
Just over half of the mortgages which had been restructured were in arrears - meaning that 107,708 mortgage accounts were had either been restructured or were in arrears by the end of the year, accounting for 14 per cent of all mortgages currently in place.
Lenders began legal proceedings to repossess 95 homes in the fourth quarter of 2011, after borrowers ran up arrears of €13.9 million based on mortgages worth a total of €37.8 million.
133 properties were taken into possession by lenders, with 50 repossessed through court orders, with the remaining 83 voluntarily surrendered or abandoned by their owners.
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I wonder how many of these mortgages are in trouble because of Permanent TSBs Extortionate interest rate of 5.2%,
Absolutely disgraceful how one state owned bank can charge 5.2% and another 3%…
IMO the only way of helping our economy, those currently in arrears and those just about managing to keep up their mortgage repayments is to extend the term of the mortgage’s to 99 years or even 199 years. This will take the pressure off people struggling to keep up with repayments, allow those in arrears to catch up and ultimately put money back in people’s pockets. While we are very much inclined to save every spare cent now, but with money in people’s pocket it opens up the options for them spending a little extra each month, which is what we need and can only be good for the economy.
Obviously it is not a complete solution to our debt crisis, but it will certainly help.
So you would rather see your grand kids pay your debt. Maybe we clear the debts and not pay the bondholders
The outcome in that scenario, greatly extended term, is dependant on inflation. If we enter a period of high inflation then the real value (purchasing power) of the mortgage will fall and this can be quite dramatic. It is possible that by the time the mortgage passes to a grand child it might be enough to by a bike. So what’s going to happen to inflation! It’s a guess but my money is on a sharp rise in about three years time. A bet based on the quantitive easing in the US, the UK and Japan. Evidence of it in the Eurozone. Add this to the inflationery trends in China and bingo.
So if I was a mortgage holder I would be looking at a 3 year horizon and do my best to get a repayment extension to relieve the current pressure.
I speak as one of those lucky sods who had a (for then) large mortgage of 3 times salary in 1970 and saw it whittle down to less than 8 months salary by 1980. All because of inflation.
Eh, lads did you ever hear of Life Assuance, namely Mortgage Protection Assurance (MPA)
Yes it is not a complete solution but it would help in the short term to give those struggling to meet mortgage repayments some breathing space. It will also bring some much needed spending power back to those people.
With regard to MPA it will have to be made compulsory to effect and MAINTAIN a MPA policy throughout the life of the borrower. At the momemt it is compulsory to effect a MPA when taking out the mortgage, but it is not necessary to maintain a MPA policy throughout the life of the mortgage. Obviously it is not recommended nor is it wise to lapse or cancel your MPA policy. This way the mortgage is cleared on the death of the borrower, thus the mortgage does not pass on to the next generation.
Yes the cost of the mortgage is going to be greater if you are paying it over a longer term, but by spreading the repayment over a longer term it reduces the immediate cost and gives relief to those under financial pressure. With regard to inflation, unfortunately as long as we are in the euro you will have to ignore it as the Germans will never allow it to go beyond 2%-3% and are manic if it is any higher than that!
And what does our Government do? Slap on a €100 Houshold charge that all of those people also have to pay – whoo hoo…
Oh, and of course progressive property taxes on the way also (even though most paid high stamp duty already) – double whoo hoo!
Ah lads!!! More doom and gloom and on a Friday too.
We know we’re fecked but there’s no need to rub it in!
“with the average mortgage holder in Ireland being €1,453 behind in their repayments.”
Does this include the mortgage holders who are not behind in their repayments?
Yes. Of the mortgages which ARE behind, the average arrears is €15,753.
Wow that is some statistic 15k behind… Ouch.
”By the end of December, 70,911 mortgage holders were more than 90 days behind on their repayments”
And how many hundred thousand people living in ”Negative Equity Denial” and such like?
Paying Ponzi Bank Debts with your hard earned real money?
Are you?
Where’s the Friday cute animals? I need a fix after this!
It’s literally being worked on, literally, as I literally type. I direct your antsy glares to my colleague Jen Wade.
So many people struggling while the ICB gear up for their Xmas party in the Mansion house tonight! No expense spared there I’d imagine!
When have the Irish banking sector ever had to cut cloth to measure?! Sure we, the tax payer, are here to bail them out time and again… I’m sure Santas sack will have another couple billion euro in it for the February festive financial fiends tonight!! Shame on them!
That’s up about another 5,000 households since Christmas. Will we have another Land War I wonder where the banks are forced to lower people mortgages like landlords were forced to lower rents in the 19th century? After all, they got us in this mess and we’re being forced to bail them out. It’s only fair, isn’t it?
What has the bank done with the €6.5 billion given to them by the taxpayers to address residential mortgages?????????????????
the question really is how much have the banks provided against this already?
if the provisions in the banks cover the arrears – then we the paxpayers have nothing to worry about from this. its further losses and potential further recapitalisations that will hurt us!
If we only had Che and Fidel Castro.
have your say