Thursday 20 June 2019

State-backed mortgage arrears drop by €108m

The value of State-backed mortgage arrears has fallen by €108m over the past three years, new figures show. (stock image)
The value of State-backed mortgage arrears has fallen by €108m over the past three years, new figures show. (stock image)

Michael Cogley

The value of State-backed mortgage arrears has fallen by €108m over the past three years, new figures show.

Prior to the introduction of the Rebuilding Ireland Home Loan last year, the Government promoted a local authority mortgage scheme.

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At the end of 2015, the value of the State's mortgage book was €1.04bn with 17,992 loans accounted for. The value of the book has dropped by €113m to €934m since then.

The number of mortgages in arrears has dropped by 1,538 in that period to 6,577, which have a value of €371.3m.

A spokesman for the Department of Housing said the reduction had been achieved by a range of measures.

"Overall the value of the local authority loan book is decreasing, primarily due to mortgages maturing and being paid off successfully by borrowers," he said. "The decrease is also due in part to the number of unsustainable mortgages that have been dealt with under the Local Authority Mortgage to Rent Scheme."

Under the scheme the State takes control of the property and leases its back to the owners. Over the past three years the Government has spent €49m buying up 354 properties under the scheme. Figures also showed that the State had completed 216 repossessions.

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