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Figures show major rise in mortgage arrears

  • 28-02-2011 1:15pm
    #1
    mathie
    Registered Users Posts: 5,093 ✭✭✭


    http://www.breakingnews.ie/ireland/figures-show-major-rise-in-mortgage-arrears-495444.html
    New figures show a major increase in the number of mortgages in arrears last year.

    At the end of 2010, just over 44,500 accounts were in arrears for more than 90 days.

    It compares with 28,600 at the same time the previous year.

    It means that 5.7% of the total residential mortgage accounts in the country were over three months in arrears at the end of last year, with more than €8.5bn owed on them.

    The figures from the Central Bank also show mortgage lenders held 585 repossessed residential properties at the end of December.



    Read more: http://www.breakingnews.ie/ireland/figures-show-major-rise-in-mortgage-arrears-495444.html#ixzz1FFsSvNWk

    I think people knew the situation would get worse but that's quite a shocking increase.
    More than 1 in 20 properties with a mortgage are in serious trouble paying back their mortgage.


Comments

  • #2
    Slydice
    Registered Users Posts: 10,501 ✭✭✭✭Slydice


    I'd be interested in seeing some sort of breakdown along the lines of

    x number of mortgages owe around y thousand and were taken out between 200x and 200x and are/are not in trouble

    i think it would help guage how bad our situation may become in the months/years to come


  • #3
    professore
    Closed Accounts Posts: 5,857 ✭✭✭professore


    Look at the unemployment rate. The higher that goes, the more mortgages will be in arrears. You can't pay a Celtic Tiger mortgage from the dole.


  • #4
    Lawrence1895
    Registered Users Posts: 7,627 ✭✭✭Lawrence1895


    Don't want to be offensive, but the banks, who gave out risky mortgages in their thousands should have known better, i.e. that the boom years would not last forever


  • #5
    Senna
    Registered Users Posts: 8,800 ✭✭✭Senna


    there's another 60k who have agreed new payments plans with their banks, extend term, interest only, reduce payments.
    A lot (not all) of these will be added to the 44k when the interest only period etc ends.


  • #6
    mozattack
    Registered Users Posts: 1,908 ✭✭✭mozattack


    so 5% cant pay the mortgage at the moment...

    what % are merely paying interest only (how long can that last)

    what % will default once interest rates double, 10 - 15%?


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  • #7
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    mozattack wrote: »
    so 5% cant pay the mortgage at the moment...

    what % are merely paying interest only (how long can that last)

    what % will default once interest rates double, 10 - 15%?

    These figures, I suspect, are some of what the oppostition have been told.

    This determines whether of not we can afford to pay for the banks.

    Just because we sank tens of billions into them does not mean they are saved. Its actually probably that we cant no matter what.

    http://www.thepropertypin.com/viewtopic.php?f=19&t=2281

    Do look at the opening post in that thread ^^^^
    I
    Some posts on page two give some figures on the interest only mortgages.......insane stuff. I did my thesis on this stuff last year and truly believe it would have been alot
    cheaper to let several or all banks fail and start some new banks. During my research I found it impossible to get my hands on the hard figures necessary as banks and the Dept of Finance simply held it all close to their chests.

    A proper cost benefit analysis could not be done by the public. They did this on purpose of course


  • #8
    robd
    Registered Users Posts: 951 ✭✭✭robd


    professore wrote: »
    Look at the unemployment rate. The higher that goes, the more mortgages will be in arrears. You can't pay a Celtic Tiger mortgage from the dole.

    It's not just the unemployment rate. There's underemployment, wage cuts, massive tax increases, drop in business for self employed, interest rate increases, resetting of interest only mortgages to capital, expiration of discount mortgage rates.

    Was a complete ticking time bomb.

    I honestly can't see a solution to this. It's just too big. If people don't pay mortgage and they're let away with it then taxpayer is on the hook as we now own the banks. If the houses are repossessed then taxpayer has to house them. Even right downs have to be subsidised by taxpayer.

    Then there's the moral hazard of the sensible people having to pay for others mistakes. The moral hazard of not being able to buy a house at a sensible price because it's in banks and taxpayers interest to prob up prices.

    It's basically a monstrous depression (bigger than recession).


  • #9
    antiskeptic
    Registered Users Posts: 9,555 ✭✭✭antiskeptic


    robd wrote: »
    It's basically a monstrous depression (bigger than recession).

    It's like watching a car crash in slow motion.


  • #10
    tHE vAGGABOND
    Registered Users Posts: 6,686 ✭✭✭tHE vAGGABOND


    I know of one person for deffo [and another who I think is all talk] who can afford to pay their mortgage, but are not - taking a VERY LARGE and dangerous gamble that all arrears will be just voided and wiped clean at some point [and also a gamble that a large state owned bank [their lender] wont repossess a family home - as most repossessions are from sub-prime organisations].

    So they are only throwing some money at the bank here and there, to keep wolf from door, but are a massive amount behind.

    I do wonder if there is much of that going on? People who "cant afford to pay" but who can afford sky and 2 weeks in the sun etc etc - if you get me?


  • #11
    Zamboni
    Registered Users Posts: 4,305 ✭✭✭Zamboni


    tHE vAGGABOND wrote: »
    I know of one person for deffo [and another who I think is all talk] who can afford to pay their mortgage, but are not - taking a VERY LARGE and dangerous gamble that all arrears will be just voided and wiped clean at some point [and also a gamble that a large state owned bank [their lender] wont repossess a family home - as most repossessions are from sub-prime organisations].

    So they are only throwing some money at the bank here and there, to keep wolf from door, but are a massive amount behind.

    I do wonder if there is much of that going on? People who "cant afford to pay" but who can afford sky and 2 weeks in the sun etc etc - if you get me?

    That's quite distressing to me as a tax payer.
    Fine Gael also want to give people like this further mortgage interest relief.
    If would be brilliant comedy if it wasn't true.


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  • #12
    Treehouse72
    Registered Users Posts: 1,003 ✭✭✭Treehouse72


    tHE vAGGABOND wrote: »
    I know of one person for deffo [and another who I think is all talk] who can afford to pay their mortgage, but are not - taking a VERY LARGE and dangerous gamble that all arrears will be just voided and wiped clean at some point [and also a gamble that a large state owned bank [their lender] wont repossess a family home - as most repossessions are from sub-prime organisations].

    So they are only throwing some money at the bank here and there, to keep wolf from door, but are a massive amount behind.

    I do wonder if there is much of that going on? People who "cant afford to pay" but who can afford sky and 2 weeks in the sun etc etc - if you get me?


    This is why the only people expressing moral and intellectual honesty on all this are the ones calling for immediate repossessions and firesales of mortgages in arrears.

    People who say this is a harsh or heartless approach are 100% wrong. Wrong, wrong, wrong, wrong, wrong.

    The immortality comes in allowing this absurdity to continue.


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