Friday 31 October 2014

Banks told to ramp up efforts on mortgage arrears crisis

One in 10 troubled mortgage holders made no repayments after their mortgage was restructured

Published 05/08/2014 | 11:22

One in 10 troubled mortgage holders made no repayments after their mortgage was restructured
One in 10 troubled mortgage holders made no repayments after their mortgage was restructured

BANKS have been told by regulators to step up their efforts to sort out the mortgage arrears crisis.

A new report released by the Central Bank today shows that lenders are now more inclined to offer repayment solutions to family struggling to meet their mortgage costs.

But just of half of those who are three months or more in arrears kept to the revised payment deal offered by their bank, the report says.

And one in 10 troubled mortgage holders made no repayments after their mortgage was restructured, the economic report, entitled ‘Mortgage Repayments After Permanent Modification’, found.

People are becoming more inclined to keep to the restructure deal, but banks need to do more, the report says.

“Given that 55pc of the stock of permanently modified defaulted loans made a full repayment in December 2013, more needed to be done before the arrears issue is resolved,” the economic paper states.

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