negative equity

Mortgage Arrears: Biggest Legacy of the financial crisis?

Mortgage Arrears: Biggest Legacy of the financial crisis?

Mortgage Arrears: Biggest Legacy of the financial crisis?Speaking about new figures released by the financial regulator today on Mortgage arrears Head of financial regulation at the central bank Mr. Elderfield said that mortgage arrears may just be “the biggest legacy issue” from the financial crisis. According to the updated figures released the financial regulator the number of homeowners missing monthly mortgage repayments increased again in the first quarter of this year, rising by 13%. At the end of March, 32,321, close to 4% of all residential property loans in the state with a value of €6.1 billion were more than 90 days behind in payments.

While many have raised the question about helping householders with substantial mortgage arrears Mr. Elderfield said that there is “No silver bullet solution… and in seeking to assist households in difficulty, we need to recognise that the cost of any support will be borne by those neighbours who avoided excessive borrowing themselves or are gritting their teeth and meeting their obligations.” Taxpayers would have to bear the cost of any support mechanism over arrears, he said.

Should empty, unfinished houses, ghost estates be demolished?

Should empty, unfinished houses, ghost estates be demolished?

Should empty, unfinished houses, ghost estates be demolished?According to a few sources & reports released earlier this month the stock of empty homes in Ireland soared 30% in the three years through 2009 and it is now estimated there are between to 345,000 and 352,000 vacant houses in Ireland.

Bad-bank NAMA aims to buy €80billion of property loans as part of a government plan to free up lenders but has warned only one third of loans – €27bn of the €81bn to be taken over by NAMA are functioning with debtors paying money owed or at the very least some of the interest on the loan. As a result, NAMA chief executive Brendan McDonagh told the Oireachtas Joint Committee on Finance this week that it may be forced to knock down unfinished property developments outside Dublin…“We may well be faced with the very difficult decision of perhaps knocking down certain developments”. …

Greed knows no bounds: Rise in mortgage rates

Greed knows no bounds: Rise in mortgage rates

Although the European Central Bank (ECB) left its rates unchanged yesterday for the 11th month in a row Bank of Ireland followed AIB today by announcing an increase in their standard-variable rates. The increase from 2.6% to 3.1% for both existing and new customers will add an extra €80 a month to the repayments of a €300,000 mortgage.

Thousands of homeowners who are vulnerable (and already hard-pressed,) to these rising mortgage rates are now being warned that they have seven days to act. Commenting on the rate rises Karl Deeter of Irish Mortgage Brokers said, “There is a very short window of opportunity now for those seeking security around the level of their future mortgage repayments to act fast before the rates increase further.” He continued, “These rises come in a year of cuts, levies, higher tax costs and deflation. It seems their greed knows no bounds.” …

345,000 vacant homes in Ireland

345,000 vacant homes in IrelandAccording to a report published by the Urban Environment Project at University College Dublin, there are no less than 345,000 empty houses or apartments in the State. This figure equates to just under 18% of all housing in the country.

This enormous oversupply of homes available in the Irish property market is a number well above recent figures released by both the National Institute of Regional and Spatial Analysis (Nirsa), based in NUI Maynooth and the Construction Industry Federation (CIF). Of course both groups defended their research with CIF stating that their 40,000 figure from the Irish Home Builders’ Association was the number of new, unsold homes in the State and did not include other categories such as second homes.

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