More than 100,000 now struggling with mortgages, new figures reveal

More than 100,000 now struggling with mortgages, new figures reveal

NEW figures set to be released by the Central Bank on Friday will show that more than 100,000 people are now struggling to repay their mortgages.

This will be the first time that the number of people in trouble with their mortgages has breached the 100,000 mark.

The figure is expected to be made up of around 62,000 homeowners in arrears of three months or more and just under 40,000 who have restructured their repayments.

Some banks have claimed there has been a spike in arrears because some people have stopped paying their mortgages after expectations were raised during the summer of debt-forgiveness deals. However, other banking sources have dismissed this, saying rising unemployment and the fact that people had used up their savings was a factor in the spike in the number of households in mortgage distress.

The new figures for July, August and September are also set to show a lower number of restructured mortgages than the last time figures were issued after a leading lender admitted to the Central Bank it has been double counting.

This means that the number of modified mortgages, where the borrower is not in arrears, is set to be little changed from the June figure of under 40,000.

Most people who get a deal to restructure their mortgages go on interest-only in order to lower the monthly repayments.

In what could be some boost to those struggling with repayments, the likelihood is that there will be another three cuts in ECB rates between now and next March which should benefit most mortgage holders.

It remains to be seen whether banks will pass them on though.

Karl Deeter of the Irish Mortgage Brokers discusses the matter in more detail in our blog. You can read it here.

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