DUBLIN—The Central Bank of Ireland has published data on mortgage arrears and repossessions for the period ending December 2010, which showed that 5.7 per cent of the total residential mortgage accounts were in arrears for more than 90 days.
Commenting on the Central Bank numbers, Ms Aideen Hayden, chairperson of housing charity Threshold, told The Epoch Times that there was “nothing particularly cheery about these figures.”
“The underlying news is not good,” she said.
She explained her comments with respect to the 59,229 residential mortgage accounts that were categorised as restructured at the end of December 2010.
Those figures indicate that of those numbers, 35,205 are “performing”. However, 24,024 are not performing. “The reality of the matter is that, fundamentally, the position is getting worse,” said Ms Hayden.
“Realistically speaking the underlying fundamentals are poor … our organisation has taken the view that there is a very significant problem out there,” she said.
What has been happening over the last two years, according to the Threshold spokesperson, has been that people have been “placed into a holding pattern, and that ultimately more significant measures will have to be taken.”
“There are a significant number of non-performing loans out there and they have a significant value … this position cannot be sustained indefinitely … repossessions will inevitably rise,” said Ms Hayden.
It was Ms Haydens opinion that there were people on restructured mortgage arrangements who still can’t maintain repayments.
“In reality, the next government will have to take this situation seriously and they will have to consider some form of debt forgiveness, however that is achieved,” she said.
“We have proposed that there needs to be a careful examination of what we call a mortgage shared equity scheme,” said Ms Hayden. This idea would mean that the state would take up some of the slack for loans in distress.
Ms Hayden believes that the state will have to pay one way or the other, whether it be rental supplements or debt assistance.
Ms Hayden concluded by saying that the current figures were calculated based on the “best possible scenario.”
The Respond housing association has echoed Threshold’s sentiments.
Their spokesperson Aoife Walsh said she believes that the problem is likely to get worse in 2011, as interest rates are set to rise and mortgage costs increase.
“These figures relate to the final quarter of 2010 and do not take into account the impact recent interest rate increases and the universal social charge is having on homeowner’s ability to pay”, said Ms Walsh.
“Respond contends that the next Government must immediately reform Ireland’s draconian personal bankruptcy laws,” said Ms Walsh, who believes that a non-judicial debt settlement procedure should be introduced that will protect families.
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