MORTGAGE ARREARS

Banks have renegotiated the terms on up to €10 billion in mortgages for hard-pressed borrowers, according to a report in The Sunday Tribune.

Quoting ‘informed industry sources’, the newspaper says between 45,000 and 50,000 home loans have been restructured – a 30% increase on the 35,000 estimate by the Irish Banking Federation earlier this year. At an average balance of €200,000, that means €10 billion in mortgages are affected.

The figures are published ahead of the expected report this week from the Expert Group on Mortgage Arrears and Personal Debt on coping with mortgage arrears. In its interim report to Finance Minister Brian Lenihan, the group recommended banks must offer a standardised mortgage arrears resolution process to assist customers who fall behind with their payments.