DBRS: Irish repossessions to rise

Irish home repossessions will rise as banks show “improved willingness” to reduce the worst of their non-performing mortgage loans on their books, according to credit rating firm DBRS.

That is the conclusion of its survey of Irish repossessed properties contained in groups of loans in so-called residential mortgage-backed securities.

Following the banking and property crash, Irish banks carry the highest levels in Europe of non-performing home loans, which has weighed on their balance sheets and limited their ability to lend, despite an expanding Irish economy. Though reduced, the high level of non-performing loans at AIB will influence the amount the Government will raise in its sale of a 25% stake in the bank, analysts have said.