Latest figures underline abject failure of Govt & banks to tackle mortgage arrears crisis – McGrath

Fianna Fáil Finance Spokesperson Michael McGrath has said the government and the banks appear to be paralysed by the scale of the mortgage crisis and are failing to address it in a meaningful way.

The Central Bank confirmed today that 83,251 or 10.9% of all private residential mortgages are now in arrears of more than 90 days. A further 40,221 mortgages have been restructured but are not in arrears.

Deputy McGrath said: “This crisis facing people across the country is deepening every week. In the three months to the end of June, a further 5,621 mortgages fell into arrears of more than 90 days, over 430 every week. 65,698 mortgages are in arrears of greater than 180 days. Typically this is associated with a very high risk of default unless some form of remedial action is taken.

“The official figures from the Central Bank today represent a near 50% increase on those recorded in June last year. The rate is 5 times that of the UK. These can only be seen as a dismal set of figures and represent a personal crisis for thousands of families and an economic crisis for the State.

“I welcome the publication of additional data showing the number of mortgages in arrears of less than 90 days. This is something I have been advocating for some time in order to give a comprehensive picture of the mortgage situation. The revelation that 45,165 mortgages fall in to this category indicates that the actual number of mortgages experiencing some level of distress is over 22%.

“The government received the Keane report eleven months ago and yet we are still waiting for meaningful action on its recommendations. No independent mortgage advice function has been established and the today’s figures again bear out the failure to implement proposals including split mortgages, shared ownership and mortgage to rent.

“While the debate on the Personal Insolvency Bill will resume in the Oireachtas next month, the system being established will not be a panacea for many people experiencing mortgage distress. The bottom line is that the government and the banks are failing to provide the leadership required to alleviate the enormous pressure on thousands of families across the country.”