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EARLIER TODAY THE Central Bank revealed that 97,874 mortgage holders are in arrears over 90 days.
Included in the statistics are these two charts that show how the problem has grown since September 2009.
Four years ago, just 3.3 per cent of mortgages were in arrears over 90 days. Today, that figure stands at 12.7 per cent. No single quarter has seen a fall since September 2009.
Can’t read the chart? Click here.
Also included in the report is a chart that shows how banks are moving to restructure the mortgages.
There were over 79,000 mortgages classified as restructured up to the end of June.
Many of the restructures are not long term solutions, with just 306 split mortgages and just 254 had been given a permanent interest reduction.
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No amount of beautiful charts will sort this shit out. I do like a good pie chart though.
How my bank is dealing with the issue is by raising my mortgage and telling “If I can’t pay, then sell “!!
Unfortunately the give it time and it will work itself out tactic hasn’t worked it will be this Governments downfall at the elections or like most elections they will implement a plan in time to maintain votes like the “clever marketeers” that they are..now lets all watch the kites in the run up to the budget
Let the cancer grow, eat away at consumer confidence and a chance to get back to a normal economy.
Stories like this scare the living shi7 out of people and they are not willing to spend while this goes on.
Time to act like a normal society and start writing off debts, stretching them out over decades etc.
The current approach of the Irish banks has never worked anywhere. It delays a return to growth.
These figures relate to PDH only, non PDH figures would be very interesting. Banks approving fire sales and then not doing something re residual debt i.e. letting it hang over people’s heads is not a solution. In certain circumstances Banks should be made feel some pain too.
hello
Its simple. You cant pay the mortgage, then the house should be taken off of you.
Its harsh but fair.
100,000 mortgage holders with children = maybe 250,000 people….so you want to see 250,000 people go homeless…great approach to the situation bud lol
Should of thought of that when they took out the loans. Nobody held a gun to thier head and said take it and also no-one forced them to pay way over the odds for a house.
And yet when the Banks could no longer pay their way due to their massively greedy and stupid speculation on commercial property, these same homeowners and everyone else was forced to bail them out. Evictions from the family home are the polar opposite to fair.
John’s not to far off the mark Shane… harsh realities of owning a house in arrears! Restructuring is in place and should be offered but capping the arrears is an important mechanism! ! As a husband, Father I feel so sorry for the families in this national debacle. Vacant lots/homes/apts need to be established socially/nationally in order to maintain security and safety of rightful citizen’s of this republic…..
True the banks needed to be bailed out at our expence. But if people said no to the stupid loans this mess would be a lot smaller. I was offered €250k 100% mortgage when I was 23 and single, I was so tempted to take it but I didnt as I thought (and rightly so) what if I cannot pay it back, I lost my job 5 years later.
What part of “your home may be at risk if you do not repay loans secured on it” do people not understand? People are to quick to blame anyone but themselves.
Now believe me I do not want to see people turfed out onto the street, but if you cannot afford something you cant afford it, cut your losses hand the keys back and rent.
@John , you are obviously feeling a bit smug at the moment but you weren’t offered a 250k mortgage if you couldn’t afford it at the time and this is the position that every mortgage holder is in. You buy the house you can afford at the time and if your circumstances change you may have to sell up and rent. The problem is the banks don’t want to repossess the house and call it quits, they want to repossess the house, sell in a depressed market for less than half the mortgage value and peruse the mortgage holder for the balance.
I would rather see people pay what they can afford ( the equivalent of rent) to remain in their homes with the bank taking a stake in any future equity. There is no point people being made homeless if they are making a genuine effort to pay their mortgage.
Hi Joe, ive to disagree with me feeling smug, id never feel smug about someone elses hardship, I was just pointing out I was able to say no, personally I didnt think I could afford it, I was one of these stupid idiots who was sh1t with money. I got loans for everything and paid them back asap, I would of saved so much money on interest if I just saved up for what I needed the loans for.
Ill agree with the renting option, but there would be so many problems with it. But if people who could make it happen amd got the ball rolling it would be a miracle.
John, The banks did not need to be bailed out. It was a choice which was made by the political and financial elite at our expense. Families do need to be kept in their homes for the overall good of our society. The people of Ireland need to decide how they want to handle this crisis. If we stand idly and do nothing then the welfare of the banks will triumph over that of the citizens again.
I have letters here, telling what could be done with the massive equity in the home, the income certainly matched the potential that one of the mortgage brokers specializing in secured incomes could advance no issue there. So seeing the prices escalate out of reach of the youngsters it was thought the correct thing to do (instead of boozing it up and holidays and cars ) to get a second home and expand the one you have. All grand there until the government turn up, reduce your income with USC, reduce departmental budgets so the overtime went and low and behold you can’t meet your payments. Its obvious the left had doesn’t know what the right hand is doing other than saving the cronies. The answer to all this has being staring them in the face since Roosevelt in the 30′s adopted warehousing and ditching – just the ditching part the banks don’t like – so sorry you over supplied everyone with money – perhaps you might not run your businesses so stupidly in future and with a modicum of social responsibility – so that’s the government part in regulating . .
Blaming the banks for the fact you borrowed too much is like blaming McDonalds for the fact you’re overweight.
There isn’t a single mortgage out there that banks forced people to take out.
The stats are interesting – I don’t see a corresponding dive in the the number of subscriptions to UPC/SKY/Netflix. The pubs are still full.
All the Irish banks collapsed into a steaming insolvent heap in 2008 and the bill was handed to the Irish people.This triggered an economic crisis which now sees tens of thousands of ordinary people in great financial difficulty. It is perfectly accurate to blame the banks for the inability of people to pay the grossly inflated mortgages which the banks peddled during the bubble.
@ Coddler, wise and enlightened. Some people understand the true nature of the problem. The wise virgins just want the banks to stick the boot in and take advantage of the way in which they inflated the residential property market by over lending.
Paul, you not only missed the dartboard. You missed the wall.
@ John Johnson Kcco, harsh, short sighted, unfair, unjust and to be resisted. We need more guys like you to mobiles the rest of us into action and opposition. Please post more comments.
Added to the fact that this government has made it easier by legislation for banks to repossess homes, things will be similar to the eviction scenes witnessed under British rule 150 years ago. When Irish families start getting evicted via this Fine Gael / Bank legislation, that’s when the fun will start., roll on the revolution.
So many red thumbs for your post ! Are people oblivious to the legislation they brought in which has given the banks more power ?
Yes they are Dean. Utterly.
At Tristan, mass scale mortgage repossessions will be like the post famine evictions. Social media, high definition videos of evictions and anti eviction agitation will fight off the banks if we, the people, show solidarity.
We must unite, organise, resist and relearn the lessons of Parnell and Davitt.
We must stand up to the pernicious Banks.
No to mortgage possession orders in respect of the principal private dwelling.
Mmmm
Graphs
Are Comments Blocked????
The banks are still in denial of the problem. They are hoping the backward nature of Irish property law will protect their negligence when infact it wont as Morgan Kelly pointed out two years ago.
Sadly, I think that even these dismal figures under report the true scale of this terrible crisis. I am not a victim, by good luck and not smarts, but I feel for those who are the victims of the Ponzi like scheme created by the Banks and encouraged by the Central Bank of Ireland.
First, in the case of the PPD, distressed borrowers should and must remain in their homes. The Court system is under resourced to address this scale of crisis. The mortgage debt is too high to be affordable in many cases. The only levwrage is to hold on to the PPD and to force the Banks eventually to cut a deal. Of course the Banks will do their best to get possession but the mortgage deals were unconscionable and are morally repugnant.
Stand up to the Banks. Let us show solidarity with
each other. The Banks are zombie banks. They cannot be rescued. Some will sell on mortgage debt at a discount. Other banks will go down with their bad debts.
Resist odious debt. Family, friends, neighbours and community first. There is comfort and strength in numbers. Let us find our mettle and our dignity. Do not allow yourselves to be downtrodden.
Remember Davitt and Parnell.
One minute they say house prices are rising in June then this! The housing market is a sham don’t buy until the bottom truly falls out.
Agreed. There is a large amount of distressed properties still to hit the market which will cause some craic with house prices.
Phileas, correctly said.
The ERSI, the IBF, the Central Bank of Ireland and the property professionals all have a vested interests in misrepresenting the buoyancy, stability and increasing values in the property market based on what is tentative and ambiguous evidence at best.
It is the three cheers for another asset bubble and screw the punters syndrome.
Roll up! Roll up, roll up. Last chance to buy cheap property. Pile in. You can’t lose.
Yeah, right!
Just got my letter today of the bank telling me to sell my house . Im not in arrears…. but bank say my financial situation is unsustainable have been on interest only the past two years never missed a payment on that …want to pay my debt which by the way is only 130 thousand so didnt go mad or anything like that ..
Rachel, that is a prevalent demand. Lots of people have recently been verbally (orally) asked or told in writing to sell their homes. Resist. It is the Bank which is in the wrong. How dare they write to you in these terms.
Debtoptions on Fb have other options,or debtoptionsireland.com
Im my situation in 2007 I could well afford to pay my mortgage but when I was made redundent in 2012 I approached my bank and we came to a 3 year agreement that suits both parties. Friends I have that work in the banks say that it is when people dont engage or leave it till things are so bad is who they get tough with.
@ Seamus, they also get tough with those who engage. I know of so many people who have engaged only to be told to sell their homes, especially in cases where there is positive equity or modest negative equity.
Would that engagement with the banks always was productive for distressed borrowers.
You can hear strange comments from people who work in banks. Not everything a banker tells you is true. You may have had a positive experience but you need to be cautious about extrapolating from that individual experience.
Did the Bank look for any of your redundancy package?
Im just giving another side to the story. It does happen. Im not saying everybodys experience is the same.
@ Seamus, you are one of the lucky ones. You were well treated. You are safe and secure.
It is great to hear of your highly positive and constructive experience and I can recognise and respect your high regard and perhaps even gratitude to the bank which treated you so well. I can understand why you are motivated to express such a positive view based on your personal experience. Yiu are excellent PR material for the Banks.
It may be that all of the the Banks are humane, compassionate and understanding. I may have misjudged the Banks. They may be prudent, well managed, pragmatic, professional, honest and decent in their dealings.
It just seems to be the case that so many distressed borrowers are having negative experiences. I wonder why FLAC, New Beginnings, David Hall and so many experts are reporting a different experience to your experience.
Who is your good bank? I’d love to hear more precise detail.
Peter I have my mortgage with Ulster Bank. Dont get me wrong. Im not a PR for the bank, Im just giving my own personal experience of my dealings with the bank and if yours or anybody elses differs I would not contradict you.
Fair dues to Ulster Bank. Are you permanently safe? Will they agree not to seek a mortgage possession order even if you don’t secure alternative employment?
It’s a turn around. Ulster Bank previously had an assertive reputation due to their parent company.
I know of 3 individuals who were conned out of their trackers by Ulster Bank.
They are currently in the process of getting them back including legal costs.
I know another individual who was put on one of the Ulster Bank “agreements” that you talk about Seamus.
And within 6 months it clocked up €4000 of arrears on the customer.
Putting the customer in a worse situation.
God bless your innocence Seamus.
Please seek professional legal advice asap.
Of course Safeashouses you are putting more debt onto yourself if you are only paying a portion of your loan. I took the mortgage and I fully intend to pay it back but the point I tried to make at the start is that for now I have been treated ok by the bank. And like I also said I would not disagree that they are threatening others. I dont know what the answer is.
Aside from the immorality of taxing Family Homes (and every child in them) in the EU, the Irish Local Property Tax is regressive … it fails to take account of inability to pay unlike all other taxes. An odious tax, contrary to canons of taxation and quite stupid in the context of 100,000 mortgages in arrears.
Seems we live in a Bankocracy not a Democracy.
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FB/LocalPropertyTax
http://www.LocalPropertyTaxPetition.net
Superbly expressed and absolutely correct comment.
When the banks were on their knees and begged the last Govt. For help they duly jumped to their financial rescue and used the people to foot the bill. Now when the chance has arrived to repay those people the banks issue threats and ultimatums to those who kept them afloat while the present Govt. talks of its dissapointment . How perverse will it be in 2016 to watch those who previously gave away our sovereignty and presently those who are leaving people to the mercy of the banks “celebrating” those who were prepared to fight and die for their country and its people
Alan, well said. Our 2016 leaders will prance around self importantly proclaiming the ideals of the 1916 Proclamation and doing the very opposite.
John what about the bond holders they took a gamble lost and got there money back so should we pay every body’s debt with our pay cuts taxes and then we can not afford our own mortgages and the banks won’t talk a deal and its out fault I don’t think so.
Bankers are and have been for a long time the enemies of the Irish people.
The interests of the Banks and the interests of the Irish people are diametrically opposed. What is good for the Banks is bad for the people and vice versa.
When this is understood, fair and feasible solutions will emerge.
There are still too many bank lovers out there. There are still those who think hat banks are infallible and that the banks can do no wrong.
Are Comments Blocked???
I posted few hours ago and no sign. Could be technical difficulties or the Banks have got to the Journal!!
The same here my razor sharp humour is in meltdown with with a backlog of rapier like comments waiting to gush forward like when Enda met Obama.
Debtoptionsireland.com
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