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.
|A 'Ghost' Estate in Co. Leitrim|