Mortgage arrears continue to fall but vulture funds strengthen their grip on the market

Several factors may have led to an increase in arrears coming under the control of non-bank entities, including banks offloading non-performing loans to vulture funds.

In June, 39% of all principle mortgage accounts in arrears were held by banks, whereas 61% were controlled by so-called non-banks entities, or vulture funds. This compares to the same month last year when non-banks held 55% of accounts in arrears. Pic: Colin Keegan, Collins Dublin

So called non-bank entities, or vulture funds, continue to strengthen their grip on the market in the Republic as lenders offload poor performing loans, a report by the Central Bank suggested.

The number of households in mortgage arrears has fallen against a backdrop of cooling inflation and reduced interest rates, however the firms that service the loans on behalf of vulture funds have seemingly absorbed a greater portion of accounts in arrears by the end of June compared to the same period a year earlier.