29% of buy-to-let properties in arrears

29% of buy-to-let properties in arrears

29% of buy-to-let mortgages are now in arrears, according to the Central Bank

Mortgage arrears on buy-to-let properties are running at double the rate of arrears on owner-occupied properties, according to preliminary data from the Central Bank.

The latest Macro Financial Review shows that banks have lent €32bn to landlords for buy-to-let properties, but 29% of those mortgages are more than three months in arrears.

That is almost twice the 14.7% arrears rate for owner-occupied properties.

The Central Bank said it is clear the banks must deal with distressed debt in a more structured and efficient way.

Elsewhere, the report notes that deposits in Irish banks are up just over 5% (€7bn) since the start of the year, mainly from corporate deposits.

It said the level of bank assets covered by the Government guarantee has fallen from €375bn in 2008 to €78bn today.

It also shows that Central Bank lending to the banking sector has fallen €10bn since the start of the year and now stands at €97bn.

Leave a Reply