Monday 27 January 2020

Fresh hope of deal for those on 100pc mortgages

Charlie Weston and Donal O'Donovan

DEBT-ravaged householders – many of whom borrowed every penny of the value of their homes at the peak of the boom – have been given fresh hope of a deal after it emerged that new lenders are taking over their loans.

Bank of Scotland (Ireland) is attempting to sell its mortgage book here, in a move that will mean its 80,000 mortgage holders are more likely to get a write-off deal on their debts.

Companies that buy up mortgage and consumer loan books are more likely to agree to write off debts as they have bought the loan portfolios at a massive discount. Many of these took out 100pc mortgages.

And now it has emerged that State-owned Permanent TSB has signed a €287m deal to sell its car loans, consumer loans and some business loans. The buyer is understood to be Deutsche Bank.

Earlier this year, Australian group Pepper bought the mortgage book of GE Money and has already started writing off mortgage holders' debts.

Bank of Scotland/Halifax closed its operations here two years ago and now manages the 80,000 residential and buy-to-let mortgages from Britain.

Most of the mortgages are trackers, with many of the buy-to-let mortgages on deals that mean only the interest is being repaid.

Huge numbers of the mortgages it issued were for 100pc of the value of homes at the peak of the boom.

Those who took out 100pc mortgages are now heavily in negative equity after house prices collapsed by half.

Irish Independent

Editor's Choice

Also in Irish News