Sub-prime mortgage arrears stand at 56%Debt of almost ?2bn currently outstanding on sub-prime accounts in arrearsThu, Jan 23, 2014, 11:55
The level of mortgage arrears among sub-prime lenders is three times higher than the national average, according to figures released by the Department of Finance. Some 56 per cent of sub-prime mortgages are considered to be more than 90 days in arrears, compared to the national average of 17 per cent. The information was contained in a Dáil reply to Fianna Fáil finance spokesman Michael McGrath by Minister for Finance Michael Noonan. Mr McGrath had asked the Minister to clarify the number of residential mortgages in Ireland that are classified as sub-prime, the total value of sub-prime mortgages outstanding and the rate of arrears on these mortgages. ?There was a total of ?3.354 billion in outstanding primary dwelling (PDH) debt and a further ?0.132 billion in outstanding in buy to let BTL mortgage debt. Of that outstanding debt, mortgage accounts amounting to ?1.885 billion (PDH) and ?0.050 billion (BTL) respectively were in arrears of over 90 days,? Mr Noonan said. Quelle: http://www.irishtimes.com/business/sectors/financial-services/sub-prime-mortgage-arrears-stand-at-56-1.1665489
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?1.9 billion in outstanding debt on sub-prime mortgages in arrearsThis amounts to more than half of the overall outstanding debt on these mortgages.MINISTER FOR FINANCE Michael Noonan has confirmed that more than half of the outstanding debt in the sub-prime lending sector is on mortgages in arrears. In response to a question from TD Michael McGrath, Noonan confirmed that, at the end of September 2013, six ?retail credit firms? had a total of 17,807 primary dwelling mortgage accounts and four had 659 buy to let accounts. These lenders made loans available to people who otherwise would have had difficulty getting mortgages because of a poor credit history. However the loans come with extremely high interest rates and these new figures show many of these borrowers are now struggling to pay them back. In total, there was ?3.345 billion in outstanding debt on primary dwelling accounts and ?0.132 billion on the buy to let accounts. Of that outstanding debt, mortgage accounts amounting to over ?1.9 billion were in arrears of over 90 days. That amounts to more than half of the overall outstanding debt. Noonan commented that the same consumer protection framework applies to there lenders as to other regulated entities. He said that the Code of Conduct on Mortgage Arrears in particular ?sets out requirements for all mortgage lenders, including retail credit firms, dealing with borrowers facing or in mortgage arrears on a mortgage secured on a primary home?. The minister added that this also provides a ?strong consumer protection framework? to ensure borrowers struggling to keep up mortgage repayments are treated in a fair and transparent manner by their lender and that long term resolution is sought by lenders with each customer in difficulty. Quelle: http://businessetc.thejournal.ie/sub-prime-mortge-debt-1278130-Jan2014/
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