Residential Mortgage Arrears, Restructures and Repossessions


#4041

Asking €695K, after all that.

What happened to their “€900,000 Dublin home” ?


#4042

Article in Irish Times today titled ‘Banks face ‘hectic’ loan restructuring as payment breaks end, Goodbody warns’

“Goodbody estimates that an average of 9 per cent of mortgages across AIB and Bank of Ireland]will be categories as impaired by the end of next year, including loans that were already in trouble before the coronavirus crisis. Almost 14 per cent of SME loans will likely be in the same category, it said.”

“The European Banking Authority (EBA) said on Monday that a blanket offering of loan payment breaks by EU lenders since March should be phased out on schedule at the end of this month, and banks should return to offering relief on a “case-by-case” basis.”

Link to Irish Times article here: https://www.irishtimes.com/business/financial-services/banks-face-hectic-loan-restructuring-as-payment-breaks-end-goodbody-warns-1.4361387


#4043

The latest Central Bank arrears report covering Q2 is due any day now. Should make interesting reading.


#4044

I’m actually looking forward to reading your analysis. I’m assuming the arrears report won’t include the people on the Covid repayment breaks?

FYI - In the Irish Independent today, there’s an article titled: “Mortgage break deadline looms next week for 37,000 householders”.

"Tens of thousands of people on mortgage payment breaks will find themselves having to meet repayments or be declared in default from next week.

A rolled-over three-month moratorium ends on Wednesday, leaving borrowers at the mercy of the banks – unless Finance Minister Paschal Donohoe insists on an extended holiday.

Mr Donohoe meets the banks on Monday, amid signs he will insist on the extension, which also makes sense for the balance sheet of domestic banks."

Link to Irish Independent article here: https://www.independent.ie/business/personal-finance/property-mortgages/mortgage-break-deadline-looms-next-week-for-37000-householders-39559828.html


#4045

New figures show that just over 4,700 mortgage accounts were more than 10 years in arrears in June.

And close to 12,000 residential mortgage accounts were between five and 10 years behind on their payments, according to the Central Bank.

Close to 9,600 accounts were overdue by between two and five years, a new breakdown of the length of time those behind on their payments shows…

…Commenting on the figures, David Hall of the Irish Mortgage Holders Organisation said those in long-term arrears were in huge difficulties.

“Will they all get a free house? I don’t think so. There is big trouble ahead for these households. It is critical those affected get proper advice to explore all options,” he said.


#4046

Mickey Mouse housing market. Watch the foreign banks bugger off…


#4047

Residential Mortgage Arrears, Restructures and Repossessions Q2 2020 figures

(Note 1: BTL figures are discussed separately here http://www.thepropertypin.com/viewtopic.php?f=10&t=50546)

(Note 2: Analysis of Restructured Mortgages can be found here http://www.thepropertypin.com/viewtopic.php?f=19&t=63422)

Report Link

https://www.centralbank.ie/docs/default-source/statistics/data-and-analysis/credit-and-banking-statistics/mortgage-arrears/residential-mortgage-arrears-and-repossession-statistics-june-2020.pdf?sfvrsn=6

Arrears

Repossessions

Restructures

Where Green = highest since records began and Blue = Lowest since records began


#4048

So Central Bank are now publishing a breakdwon of arrears of
2-5 years: 9,591
5-10 years: 11,936
10+ years: 4,745

Crazy numbers. 10+ years must be a first for any country in the world. Anyone else would have reposessed that property by then!


#4049

Expect the 10 year figure to jump dramatically in the second half of next year - there was a big spike in defaults after the Dunne ruling in July 2011.