Up to 10,000 in mortgage arrears could have homes repossessed

Update 1.45pm: Up to 10,000 customers in mortgage arrears could have their homes repossessed.

The Central Bank says that four in ten borrowers in long-term arrears haven’t engaged at all with their lender.

It comes as a new report warns that many people do not know enough about their personal finance resulting in bigger debt and higher interest rates.

The latest figures show 44% of loans in long-term arrears are now over five years past their due date.

25,000 mortgages are at least two years in arrears.

The Central Bank has warned that the problem continues to make the economy vulnerable.

The report also calls for an online course to be independently run to help people make better decisions about their money.

Earlier:: The Central Bank says the country's banking system has an increasing problem with non-performing loans.

The latest figures show 44% of loans in long-term arrears are now over five years past their due date.

The Central Bank says the problem continues to make the economy vulnerable.

Nearly 40% of borrowers in long-term arrears had not engaged with their lender.

Sharon Donnery, Deputy Governor of the Central Bank said: "Non-performing loans remain a risk to the economy and the future, so it's in all of our interests to resolve them.

"Clearly if the banks are in a healthy position, then their ability to lend into the economy, support firms and job creation, is enhanced if this legacy issue is dealt with."

- Digital Desk


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