Repossessions occur almost on daily basis, says regulator...
Level of arrears doubles in 15 months
THE homes of 331 people have been repossessed this year -- almost one a day -- and a further 26,271 mortgage holders are three months or longer behind in their mortgage repayments.
This means the percentage of households falling into arrears has more than doubled in the last 15 months, new figures from the Financial Regulator show.
But mortgage experts accused the regulator last night of down-playing the extent of the mortgage crisis.
They said the figures take no account of the thousands of homeowners who have got permission from their lenders for a payment holiday or are now only paying the interest on their mortgage in a bid to lower the repayments.
The figures show that the State's 22 mortgage lenders held a total of 331 repossessed homes by the end of September. In the three months from June to September alone 110 properties were repossessed.
Included in the 331 repossessed properties are 79 that were voluntary surrendered or abandoned.
But the director general of the Free Legal Aid Centre, Noeline Blackwell, warned borrowers that they will still owe money on the house even if they abandon it.
They may also be turned down for social welfare payments and will not get on a local authority housing list because they will be regarded as having intentionally made themselves homeless.
The 26,271 homeowners who are in arrears for three months or more represent 3.3pc of the 791,634 mortgages outstanding. Of these, 17,767, or 2.2pc, were more than six months in arrears.
The figures show that a total of €4.8bn is owed on the 26,271 mortgages that are more than 90 days in arrears, and that €3.2bn is owed in respect of accounts more than six months in arrears.
Ciaran Phelan, of the Irish Brokers Association, said the repossession and arrears figures did not represent the true extent of the mortgage mess.
"This study only looks at those people who are in breach of their loan agreement and doesn't include those mortgage holders who are on repayment moratoriums or have reduced to interest-only repayment with the consent of the lender.
Under-estimate
"Although not technically in arrears, there are probably as many people in these latter groups as in the regulator's survey."
Diarmuid Kelly, of the Professional Insurance Brokers Association, said the new figures were a huge under-estimate of the scale of the mortgage crisis facing homeowners.
The Irish Bankers Federation (IBF) said figures showed that subprime lenders who are not members of the IBF account for just 2pc of mortgages but 42pc of all repossessions.
The head of the IBF, Pat Farrell, said: "We are acutely aware of the pressures facing some homeowners in the current economic environment and remain firmly of the view that early, constructive communication between the borrower and the lender is the best way to deliver mutually-acceptable outcomes."
Report by Charlie Weston Personal Finance Editor - Irish Independent
Level of arrears doubles in 15 months
THE homes of 331 people have been repossessed this year -- almost one a day -- and a further 26,271 mortgage holders are three months or longer behind in their mortgage repayments.
This means the percentage of households falling into arrears has more than doubled in the last 15 months, new figures from the Financial Regulator show.
But mortgage experts accused the regulator last night of down-playing the extent of the mortgage crisis.
They said the figures take no account of the thousands of homeowners who have got permission from their lenders for a payment holiday or are now only paying the interest on their mortgage in a bid to lower the repayments.
The figures show that the State's 22 mortgage lenders held a total of 331 repossessed homes by the end of September. In the three months from June to September alone 110 properties were repossessed.
Included in the 331 repossessed properties are 79 that were voluntary surrendered or abandoned.
But the director general of the Free Legal Aid Centre, Noeline Blackwell, warned borrowers that they will still owe money on the house even if they abandon it.
They may also be turned down for social welfare payments and will not get on a local authority housing list because they will be regarded as having intentionally made themselves homeless.
The 26,271 homeowners who are in arrears for three months or more represent 3.3pc of the 791,634 mortgages outstanding. Of these, 17,767, or 2.2pc, were more than six months in arrears.
The figures show that a total of €4.8bn is owed on the 26,271 mortgages that are more than 90 days in arrears, and that €3.2bn is owed in respect of accounts more than six months in arrears.
Ciaran Phelan, of the Irish Brokers Association, said the repossession and arrears figures did not represent the true extent of the mortgage mess.
"This study only looks at those people who are in breach of their loan agreement and doesn't include those mortgage holders who are on repayment moratoriums or have reduced to interest-only repayment with the consent of the lender.
Under-estimate
"Although not technically in arrears, there are probably as many people in these latter groups as in the regulator's survey."
Diarmuid Kelly, of the Professional Insurance Brokers Association, said the new figures were a huge under-estimate of the scale of the mortgage crisis facing homeowners.
The Irish Bankers Federation (IBF) said figures showed that subprime lenders who are not members of the IBF account for just 2pc of mortgages but 42pc of all repossessions.
The head of the IBF, Pat Farrell, said: "We are acutely aware of the pressures facing some homeowners in the current economic environment and remain firmly of the view that early, constructive communication between the borrower and the lender is the best way to deliver mutually-acceptable outcomes."
Report by Charlie Weston Personal Finance Editor - Irish Independent