Tuesday 6 December 2016

Vulture fund mortgage arrears hit 38pc

Published 14/09/2016 | 02:30

Figures show 38pc of the mortgages held by vulture funds are two years or more in arrears (Stock picture)
Figures show 38pc of the mortgages held by vulture funds are two years or more in arrears (Stock picture)

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

  • Go To

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.

Nearly 46,000 residential mortgages are owned by what the Central Bank calls non-bank entities. Most of these are held by regulated credit firms. But 30pc are owned by what the Central Bank refers to as "unregulated loan owners", or vulture funds.

The figures show 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.

Credit

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 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. The figures also show 120, 614 residential mortgage accounts were restructured at the end of June.

David Hall of the Irish Mortgage Holders Organisation said that at the rate that banks are dealing with problem mortgages it will take more than a decade sort them out.

Irish Independent

Read More

Promoted articles

Editors Choice

Also in Business