Seven in ten home loans in trouble at Start Mortgages

Seven in ten home loans in trouble at Start Mortgages

Seven in ten home loans at sub-prime lender Start Mortgages are in trouble, according to their latest accounts.

At the height of the boom Start Mortgages bundled up hundreds of millions worth of Irish home loans and sold the debt on to investors in the bond markets through a company called Lansdowne Mortgage Securities No 1.

Accounts just filed show that 26% of the remaining €120m borrowers bundled together in Lansdowne 1 are so far behind on their loans that they are regarded as “impaired”, suggesting real fears that the debt can never be recouped.

According to a report in today’s Irish Independent, a further 46% of borrowers are in arrears on their loans, many by more than a year.

Fewer than one in three of the Lansdowne 1 mortgages is not either classes as being in arrears or impaired, according to the accounts.

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