Friday 22 September 2017

Another 30,000 will suffer mortgage troubles

Louise McBride

Louise McBride

Another 30,000 people will struggle with their mortgage by the end of this year, economists and mortgage brokers are warning. This would bring the total number of borrowers in danger of losing their home to an alarming 100,000.

The recession and rising interest rates have already forced 70,000 borrowers to either miss their mortgage repayments -- or to change how they pay their mortgage.

"With rising unemployment, higher taxes, and the threat of higher interest rates this year, at least 100,000 people could be under stress to meet their mortgage repayments by the end of this year," said Michael Dowling, spokesman for mortgage brokers, the Independent Mortgage Advisers Federation.

There are already 18,000 borrowers turning to the State for help with repayments. The bill for the mortgage interest supplement was €65.6m last year, compared with €7.9m in 2006, according to the Department of Social Protection.

Homeowners are bracing for a double whammy of interest rate rises. As well as the standard variable rate hikes expected from Permanent TSB and other lenders, the European Central Bank recently hinted it could notch up its interest rate this year.

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