Irish

Wednesday 23 July 2014

AIB taking 'aggressive stance' against buy to let mortgages in arrears

Donal O'Donovan

Published 09/04/2014|15:22

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AIB is taking an "aggressive stance" in relation to buy to let mortgages in arrears, the Dail Finance Committee has been told.

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Fine Gael TD Kieran O'Donnell said an estimate by the bank that 80pc of 2,570 investment mortgages in deep arrears will be repossessed suggests an "aggressive" approach.

AIB chief executive David Duffy said the bank regards buy to let investments as being like any other investment rather than family homes.

Some 800 investment properties are under the control of receivers, the bank said.

AIB repossessed 58 family home last year, up from 20 in 2012. The bank has kicked off legal proceedings against 2,500 borrowers in relation to a mortgage on their main home.

Earlier Permanent TSB  confirmed it expects to repossess "thousands" of homes as it works through mortgage arrears targets.

But, the bank expects the larger share of repossessions to be of buy-to-let investments, not family homes.

AIB is the third of the main banks appearing in front of the Finance Committee this week to provide updated figures on mortgage arrears.

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