Sunday 4 December 2016

Banks yet to restructure 70pc of mortgage arrears cases

Published 17/04/2015 | 02:30

Officials at Michael Noonan's Department of Finance officials pointed out that the overall number in arrears for more than 90 days is down 1,700 on the January figure
Officials at Michael Noonan's Department of Finance officials pointed out that the overall number in arrears for more than 90 days is down 1,700 on the January figure

Banks have yet to restructure the majority of mortgages that are in arrears, new figures show.

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Seven out of 10 homeowners who are three months or more in arrears have yet to reach a deal with their banks to get back on track, Department of Finance figures show.

The number of mortgages that had been restructured fell by less than 1,000 in February, compared with the previous month.

There are still 41,500 mortgages that are more than three months in arrears that have yet to be restructured, the Department of Finance said.

This is out of almost 60,000 mortgages that are more than three months behind on repayments.

This means that 70pc of troubled home loans are still to have a repayment schedule put in place.

Officials at Michael Noonan's Department of Finance officials pointed out that the overall number in arrears for more than 90 days is down 1,700 on the January figure. The figures are for the six main domestic lenders - AIB/EBS, Bank of Ireland, Ulster Bank, Permanent TSB, KBC and ACC.

The figures show that the total number of mortgage accounts that have been restructured by the main banks was 106,402 at the end of February.

This includes mortgages in arrears and those that are not.

For buy-to-let properties, the number of accounts in arrears was down 529 to 28,603.

There was a fall of 303 in the number of those in arrears for more than three months to 23,520.

The department said: "In the month of February, engagement between consumers and lenders has led to an increase of 373 accounts permanently restructured, which stood at 19,002 accounts."

The data on the slow pace of banks dealing with those in arrears comes days after figures from the Insolvency Service found lenders are rejecting four out of 10 formal deals put to them by exercising their veto.

A total of 129 of these were personal insolvency arrangements (PIAs), which involve the write-off of mortgage debt.

But campaigners warned that deals were not being done fast enough to cope with the massive numbers deeply in debt.

Some 31,000 homeowners have been threatened with repossession by the six main banks, according to Central Bank data.

Irish Independent

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