THE Central Bank and the EU/IMF “Troika” have agreed new targets for banks to sort out cases of long term mortgage arrears.
Banks have been told that 15pc of the 100,000 mortgages in the deepest arrears must be resolved by the end of the year.
Under the new targets mean lenders must have a new debt arrangement in place for the borrowers who are 90 days or more behind on their debts out of arrears by the end of December.
That can be done by bank and borrower agreeing new loan repayment plans - such as a split mortgage or reduced interest burden, but repossessions or so called “voluntary” home sales by families under pressure from lenders will also count.
Earlier this year the Central Bank told the main lenders that they must have made an offer aimed at resolving long term arrears to half of the around 100,000 home-owners who are three months or more behind on repayments by the end of the year, 30pc of borrowers are to receive an offer by the end of this month, under that target.
Controversially the four main lenders AIB, Bank of Ireland, Permanent TSB and Ulster Bank they between them have sent around 15,000 legal letters threatening repossession to home owners as part of the effort to hit the target for offers.
Banks have now been told that 70pc of borrowers in arrears must have an offer by the end of March.
Further targets for completion of debt resolutions are expected to be rolled out through next year, a target to have 25pc of debts “cured” by the end of March is understood to have already been discussed.