Saturday 3 December 2016

40pc of people who have mortgage with vulture fund 'in arrears'

Charlie Weston Personal Finance Editor

Published 13/09/2016 | 11:14

The Central Bank Building on Dame Street Photo: Caroline Quinn
The Central Bank Building on Dame Street Photo: Caroline Quinn

HUGE numbers of people who have a mortgage with a vulture fund are in arrears.

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New figures from the Central Bank show that almost four out of 10 of those whose home loan is owned by a vulture fund are two years or more behind on their mortgage repayments.

Close to 46,000 residential mortgages are owned by what the Central Bank calls non-bank entities.

Most of these are held  regulated credit firms.

But 30pc are owned by what the Central Bank refers to as “unregulated loan owners”, or vulture funds.

New figures show that 38pc of the mortgages held by vulture funds are two years or more in arrears.

This means that around 5,200 mortgages owned by vulture funds are more than two years in arrears, putting these people at high risk of losing their homes.

This comes with 19pc of mortgage accounts that in arrears of two years or more at retail credit firms.

A retail credit firm is allowed to issue loans, but unlike a bank it is not allowed to take deposits.

Overall, the numbers behind on their payments continues to fall.

But one in nine residential mortgages are in arrears across all banks and other lenders.

This works out at 82,000 mortgage accounts that were in some form of arrears at the end of June this year, the Central Bank said.

This was down almost 4,000 compared with the first three months of the year.

It was the 12th quarter in row the overall number of mortgages in arrears fell.

Almost 35,000 mortgage accounts are more than two years in arrears, a figure that is little changed from the previous quarter.

Close to 15,000 buy-to-let mortgages are more than two years behind on repayments.

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