Alert on loan arrears
CLOSE to one in five homeowners are struggling to repay their home loan each month and the majority of these are potentially under insured on their mortgage protection.
Caledonian Life has analysed the latest Central Bank figures and said that of the 63,000 homeowners who are in arrears for three months, many could be unaware of the serious implications for them and their family if the primary earner was to pass away.
"The value of the average amount of arrears has been calculated by the Central Bank at €27,000," said Joe Charles, marketing manager at Caledonian Life. "In the event of the mortgage holder dying, if the partner or family were unable to fund the outstanding €27,000, the bank could ultimately repossess the house."