Advertisement

We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Mortgage via Shutterstock

Concern that banks are only tackling "easy" mortgage arrears cases

The new figures show that 168 properties were taken into possession by lenders in the last quarter of 2013.

THE NUMBER OF mortgage accounts for principal homes in arrears fell for the second consecutive quarter in the final quarter of 2013.

There was also the first decrease in arrears of over 90 days since September 2009, the new figures from the Central Bank show.

The outstanding balance on primary home mortgage accounts in arrears of more than 90 days was €18.2 billion at the end of last year.

Repossession

There were 1,012 properties in the banks’ possession at the beginning of the final quarter in 2013.

During the quarter, 168 properties were taken into possession by lenders, 63 of which were repossessed under a court order, and 105 of which were voluntarily surrendered.

The figures also show:

  • At the end of that quarter, there were 33,589 mortgage accounts with arrears of greater than 720 days, meaning outstanding balances of €6.9 billion. These accounts represented almost 63 per cent of outstanding arrears on homes at the end of last December.
  • Mortgage accounts for principal dwelling houses of over 90 days at the end of December 2013 decreased by 2.3 per cent over the quarter, which represents the first such decline since 2009.
  • The number of buy-to-let mortgages in arrears fell from 40,396 (27.4 per cent) to 39,250 (27 per cent) in the fourth quarter of 2013.
  • There were 12,218 (8.4 per cent) residential mortgage accounts for buy-to-let properties in arrears of over 720 days at the end of December last year, up from 7.9 per cent at the end of September in the same year.
  • The outstanding balance on these accounts at the end of December 2013 was €3.9 billion.

Investigation

The Irish Mortgage Holders Organisation has said that the new figures show that “there needs to be an urgent investigation by the Central Bank of what banks are classifying as long-term sustainable”.

The IMHO said that the use of arrears capitalisation in 22 per cent of “restructures” along with 11.6 per cent in an “other” category means that “serious questions must be asked”.

The IMHO noted that while there is a reduction in the numbers of those in short term arrears, it alleged there is “a very concerning trend of those in long term arrears being ignored in favour of banks choosing easier arrears cases to solve”.

Of those whose arrears were capitalised, it says the fact that 41.2 per cent have re-defaulted “clearly shows the concern is merited”.

The IMHO described the numbers in long term arrears as “frightening” and showing that “urgent and meaningful intervention is required”.

Meanwhile, Sinn Féin Finance Spokesperson Pearse Doherty TD described the figures as “proof of three years of complete failure by Fine Gael/Labour in tacking the mortgage crisis”.

Read: Mortgage holders group join with KBC to offer arrears advice service>

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Close
38 Comments
    Install the app to use these features.
    Mute Ciaran Morgan
    Favourite Ciaran Morgan
    Report
    Mar 4th 2014, 5:10 PM

    Banks are ruthlessly going after properties whose values exceed the mortgage. If you are in serious negative equity you will be left alone for now.

    87
    Install the app to use these features.
    Mute Thomas Dooly
    Favourite Thomas Dooly
    Report
    Mar 4th 2014, 6:54 PM

    No truer words were spoken ,Ciaran !

    25
    Install the app to use these features.
    Mute Sean Reilly
    Favourite Sean Reilly
    Report
    Mar 4th 2014, 10:24 PM

    Ruthlessly? 63 houses repossessed in 3 months on foot of court order…less than 0.01% of arrears

    12
    Install the app to use these features.
    Mute Mindfulirish
    Favourite Mindfulirish
    Report
    Mar 4th 2014, 5:08 PM

    I bet they are not chasing their friends and the families of developers who they socialised with.

    49
    Install the app to use these features.
    Mute CMac59
    Favourite CMac59
    Report
    Mar 4th 2014, 5:00 PM

    It seems the figures are being manipulated to bring down the number of households in mortgage arrears. Makes it look as if the government and banks are doing something.

    The banks were given Euro 6 billion 2 years ago to deal with the problem and merely lodged it to their own balance sheets and left it at that. Noonan said nothing.

    Suits Noonan and his cabinet colleagues who has no good thoughts for any of his fellow citizens struggling after we paid off the bank debt and bondholders speculation. That is the kind of government we have in this period of crisis.

    48
    Install the app to use these features.
    Mute Sean O'Keeffe
    Favourite Sean O'Keeffe
    Report
    Mar 4th 2014, 7:46 PM

    Dr Gurdgiev (Russian not Ukrainian) has been pointing this out for quite a while.

    If his analysis is correct bank balance sheets have continued to deteriorate since the start of the crisis and the state has been preoccupied with the cosmetic stage management of the crisis rather than effective crisis management.

    “Total outstanding volumes of mortgages in arrears stood at EUR36.56 billion in Q3 2013, up 5.8% y/y (comprising EUR25.56bn in residential mortgages volumes +4.75% y/y and EUR11.0bn of BTLs +8.32% y/y).
    Total amounts of actual arrears rose to EUR3.479bn in Q3 2013, up 28.2% y/y.”
    Constantin Gurdgiev, 28/11/14

    10
    Install the app to use these features.
    Mute whynotme
    Favourite whynotme
    Report
    Mar 4th 2014, 4:52 PM

    That can is on one long road trip

    43
    Install the app to use these features.
    Mute Nash Bridges
    Favourite Nash Bridges
    Report
    Mar 4th 2014, 5:29 PM

    Only way it will stop being kicked is if house prices rise significantly. Otherwise why would the banks bother doing anything. Any balance sheet problems can be picked up by the taxpayer.

    18
    Install the app to use these features.
    Mute GATHERINGYOURMONEY14
    Favourite GATHERINGYOURMONEY14
    Report
    Mar 5th 2014, 12:02 AM

    “Better start drawing few zeros after asking prices then”
    “That should sort it”

    3
    See 1 more reply ▾
    Install the app to use these features.
    Mute Vladimir Pootin
    Favourite Vladimir Pootin
    Report
    Mar 5th 2014, 8:48 AM

    My ex wife had an easy arrear.

    1
    Install the app to use these features.
    Mute Gowanoutathat
    Favourite Gowanoutathat
    Report
    Mar 4th 2014, 4:56 PM

    Of course , if they just work hard on the easy cases where good honest people fell on hard times then any results can be used as propaganda …. They can claim they are reaching targets and of course there’s the bonuses.

    Tuff cases of arrears are usually self deployed tactics by business people who know how to play the game. Bank will go after them eventually but only after the joe soaps are squeezed as much as possible .

    38
    Install the app to use these features.
    Mute Norman Hunter
    Favourite Norman Hunter
    Report
    Mar 4th 2014, 4:53 PM

    Queue the usual clowns saying kick them out “if I didn’t pay my rent blah fcuking blah…..”or I have €30, 000 but can’t buy a house.

    33
    Install the app to use these features.
    Mute GATHERINGYOURMONEY14
    Favourite GATHERINGYOURMONEY14
    Report
    Mar 5th 2014, 12:03 AM

    Que DaveMac and Jeremy Rimmer : )

    1
    Install the app to use these features.
    Mute Vladimir Pootin
    Favourite Vladimir Pootin
    Report
    Mar 5th 2014, 8:49 AM

    Ha ha rimmer

    1
    See 1 more reply ▾
    Install the app to use these features.
    Mute DaveMac
    Favourite DaveMac
    Report
    Mar 5th 2014, 5:58 PM

    You are the clown not paying your mortgage because you were stupid enough to lose your job.

    1
    Install the app to use these features.
    Mute OGGIE3rd
    Favourite OGGIE3rd
    Report
    Mar 4th 2014, 5:00 PM

    Sustainable ..lol lol lol Trust the banks they said ..lol lol lol we knows what we are doing ..lol lol

    24
    Install the app to use these features.
    Mute joseph
    Favourite joseph
    Report
    Mar 4th 2014, 6:20 PM

    I have tried talk to this bank for the last 3 years not a budge out of them just more P R from them.

    22
    Install the app to use these features.
    Mute Joey Hackman
    Favourite Joey Hackman
    Report
    Mar 4th 2014, 5:31 PM

    Is anybody fed up of the IMHO and it’s spinning every time mortgage statistics are published?

    22
    Install the app to use these features.
    Mute Kerry Blake
    Favourite Kerry Blake
    Report
    Mar 4th 2014, 5:22 PM

    Government doing nothing for those in trouble yet again…

    20
    Install the app to use these features.
    Mute DaveMac
    Favourite DaveMac
    Report
    Mar 4th 2014, 5:31 PM

    Nice few repossessions there, good work

    19
    Install the app to use these features.
    Mute Norman Hunter
    Favourite Norman Hunter
    Report
    Mar 4th 2014, 5:34 PM

    You still here? thought you, your family and your €90, 000 were emigrating.

    29
    Install the app to use these features.
    Mute Jeremy Rammer
    Favourite Jeremy Rammer
    Report
    Mar 4th 2014, 5:47 PM

    Brilliant news Dave i couldn’t stop smiling when i read this

    I may pour myself a drink to celebrate

    11
    See 4 more replies ▾
    Install the app to use these features.
    Mute Thomas Dooly
    Favourite Thomas Dooly
    Report
    Mar 4th 2014, 6:51 PM

    Aaron & Dave , two of the resident trolls !

    8
    Install the app to use these features.
    Mute Thomas Dooly
    Favourite Thomas Dooly
    Report
    Mar 4th 2014, 6:53 PM

    Nice few repossessions that we already knew about ..old news!

    7
    Install the app to use these features.
    Mute GATHERINGYOURMONEY14
    Favourite GATHERINGYOURMONEY14
    Report
    Mar 5th 2014, 12:08 AM

    Pour yourself a nice glass of Ribena Rimmer.
    Celebrate the fence splinters in your fork.

    3
    Install the app to use these features.
    Mute DaveMac
    Favourite DaveMac
    Report
    Mar 5th 2014, 5:58 PM

    Gathering and Thomas (same person?) are such jealous people. Jealous of successful Dubliners. haha

    1
    Install the app to use these features.
    Mute DaveMac
    Favourite DaveMac
    Report
    Mar 4th 2014, 5:35 PM

    Wait for the usual losers to come on here and rant (lol lol lol, grr successful people, de banks de bankks etc.)

    14
    Install the app to use these features.
    Mute Thomas Dooly
    Favourite Thomas Dooly
    Report
    Mar 4th 2014, 6:52 PM

    Stop ranting with your usual rhetoric , loser!

    10
    Install the app to use these features.
    Mute OGGIE3rd
    Favourite OGGIE3rd
    Report
    Mar 4th 2014, 7:06 PM

    I’s am’s very happy..lol lol lol youse make me laugh out loud ..lol lol lol youse remind me of wife no3 ..lol lol lol she crazier than a cat burying her sh1te on a marble floor ..lol lol lol

    12
    See 3 more replies ▾
    Install the app to use these features.
    Mute Thomas Dooly
    Favourite Thomas Dooly
    Report
    Mar 4th 2014, 7:54 PM
    6
    Install the app to use these features.
    Mute Sean O'Keeffe
    Favourite Sean O'Keeffe
    Report
    Mar 4th 2014, 8:50 PM

    I’ve always held that anyone who talks to themselves in public isn’t mentally healthy.

    5
    Install the app to use these features.
    Mute DaveMac
    Favourite DaveMac
    Report
    Mar 5th 2014, 5:59 PM

    ….and there they are. haha losers.

    1
    Install the app to use these features.
    Mute Miranda Allen
    Favourite Miranda Allen
    Report
    Mar 4th 2014, 5:57 PM

    Dave do you log in and out when switching from Dave to Jeremy or do you have two separate devices?

    12
    Install the app to use these features.
    Mute Paul Flynn
    Favourite Paul Flynn
    Report
    Mar 4th 2014, 7:29 PM

    This is the banking scam – they either get your labour for life, or if you fail to pay the mortgage they take the house, thereby acquiring a real asset in exchange for a few digits entered onto a computer screen the day you took out the mortgage. Cop on people.

    10
    Install the app to use these features.
    Mute NAMApropertymarket
    Favourite NAMApropertymarket
    Report
    Mar 5th 2014, 8:00 AM

    Paul heres a violin playing the worlds saddest song

    Just for you

    Deal with it you hippy

    1
    Install the app to use these features.
    Mute Paul Flynn
    Favourite Paul Flynn
    Report
    Mar 5th 2014, 8:15 AM

    Uh oh. Looks like someone has a mortgage and wishes he had the intellect to see through the banking scam but he doesn’t so he goes for an ad hominem attack. Keep the violin for yourself namaboy.

    2
    Install the app to use these features.
    Mute Sarah Reilly
    Favourite Sarah Reilly
    Report
    Mar 5th 2014, 10:34 AM

    It’s probably a case that deep arrears are like very sick people, harder to cure and the lower arrears are more like a bad cold. That doesn’t make for a great sound bite but it’s probably the way it is

    2
    Install the app to use these features.
    Mute joseph
    Favourite joseph
    Report
    Mar 4th 2014, 6:17 PM

    I

    1
Submit a report
Please help us understand how this comment violates our community guidelines.
Thank you for the feedback
Your feedback has been sent to our team for review.
JournalTv
News in 60 seconds