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UK rules would spark 33,000 home seizures

TENS of thousands of homes would be repossessed if banks applied the same policy for seizing houses here as lenders do in the UK, news statistics show.

Research from Davy Stockbrokers has found that 33,000 owner-occupier homes would have been seized by lenders in the last three years alone if the banks became as aggressive as their British counterparts when it comes to dealing with struggling homeowners.

According to Davy's credit analyst Stephen Lyons, the chances of a homeowner losing their home in Britain increases to 20pc when the arrears on their mortgage reach 2.5pc of the value of the loan.

That means there is a 20pc chance the bank will repossess a house in Britain once someone is €10,000 behind on a €400,000 mortgage.

There have been some 1,700 repossessions of personal dwellings in Ireland since 2009 – less than 6pc of what the total would be under the scenario outlined by Davy.

The report comes on the heels of the Government's personal insolvency guidelines, which outlined the measures families will have to abide by if they want a deal on their debts.

Irish Independent