A
recent report by Davy Stockbrokers has found the following:
1.
50% of all Irish mortgages are in negative equity.
2.
At March 2012, 13.4% of owner-occupier mortgages were more than 90 days behind
payment. The arrears rate on buy-to-let mortgages was at least double
that figure.
3.
AIB, Bank of Ireland and Permanent TSB could lose as much as €11.5bn on Irish
mortgages.
Despite these problems in the mortgage market, write-downs and repossessions
have been negligible. This could be because it would be politically
unpopular to do so as Irish banks have received huge taxpayer bailouts.
Alternatively, maybe the banks and politicians are hoping for the housing
market and economy to recover. Whatever the reason, there is a wealth transfer
in Ireland from those who don't have mortgages in negative equity towards those
who do.
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| A 'Ghost' Estate in Co. Leitrim |