Saturday 19 January 2019

Defaults double over mortgages

DEFAULTS among Irish mortgage holders more than doubled over the course of last year, according to the latest analysis from Moody's.

And the number of defaults was still growing in December, the ratings agency added.

Its mortgage analysis found that 1.65pc of the residential mortgages it studied had not been repaid for 360 days or more in December.

This was up from 1.62pc in November. It compared to 0.7pc a year earlier.

The Moody's analysis looks at €40.6bn of residential mortgages, which Irish lenders have used to back bonds used in order to raise funds.

The mortgages have been issued by AIB, Bank of Scotland (Ireland), Bank of Ireland/ICS, EBS, First Active, Irish Life Permanent, KBC and Ulster Bank.

Within the group of loans tracked by Moody's, the highest proportion of full residential defaults in December was recorded by First Active, with 3.11pc.

This was almost double the 1.6pc it registered at the end of 2009.

The EBS had the next biggest default rate of 2.24pc, up from 1pc.

Irish Life Permanent had the biggest growth in defaults over the year, seeing its rate almost triple to 1.44 per cent.

AIB was found to have the lowest default rate of 0.41pc in December.

Promoted articles

Entertainment News