Nearly one third of mortgages sold to vulture funds in arrears
ALMOST a third of residential mortgages sold to vulture funds were in arrears at the end of March, new figures from the Central Bank show.
Close to 14,500 household mortgage accounts were more than three months behind on their repayments, according to new figures from the Central Bank.
This is out of a total of 47,400 mortgages, both residential and buy-to-let, that were sold to what the Central Bank calls non-bank entities.
These non-bank entities include vulture funds that bought mortgages, and firms servicing mortgages that issued by Bank of Scotland, which is no longer operating in this market.
The number of homeowners that are more than three months in arrears represents around 30pc of the overall number of mortgages held by these funds.
Just over 9,000 of the residential mortgage accounts held by unregulated vulture funds were more than two years in arrears.
This represents 26pc of all mortgage accounts in arrears for more than two years, the Central Bank said.
The figure was unchanged from the end of December.
Across all the lenders, the numbers of homeowners in arrears fell in the first three months of this year.
A total of 85,989 of accounts were in arrears at of the first quarter, a decline of 2.6pc compared with the end of 2015.
The total number in arrears represents 11pc of all residential mortgage accounts from all lenders.
The number of accounts in arrears over three months at the end of March was 59,696, reflecting a decline of 3.6pc on the previous quarter.
This represents the 10th consecutive decline in the number of residential accounts in arrears over 90 days, the Central Bank said.
Some 35,792 residential accounts are more than two years in arrears, down 559 accounts.