Impaired home loans rise at Haven

The value of impaired loans at EBS subsidiary Haven Mortgages last year increased by €19m to €238.7m as the firm’s number of repossessions increased fivefold.

New accounts show that that the percentage of impaired loans last year increase from 18.8% to 21.7%, or from €209.4m to €238.7m of the firm’s total loan book.

Overall, the percentage of Haven Mortgages criticised loans last year increased from 28.4% to 31.1% or from €317.4m to €340.9m.

The criticised loans at the end of December last were made up of €238.7m in impaired loans, €36.9m in vulnerable loans, and €65.3m of loans under watch.

According to the accounts filed with the Companies Office “the main drivers of the increases in criticised loans has been the impact of the continuing lack of activity in the property sector and consequent impact on the housing sector, together with increased unemployment and reduced earnings which negatively affected borrowers’ ability to repay loans.

The total loan book stood at €1.1bn. EBS established Haven Mortgages Ltd in late 2007 with the purpose of expanding the EBS’s presence in the intermediary mortgage market.

The accounts record that €799.2m of the firm’s loan book was considered satisfactory at the end of last year.

Haven Mortgages saw a pre-tax profit of €13.62m in 2013 despite a further €8m writedown in loans. The writedowns of €8m are under half the €16.6m write down recorded in 2012

Total interest income came to €14.2m compared to €14.7m in 2012.

Directors’ remuneration last year totalled €129,000 that was paid to Kieran Tansey, made up of a salary of €113,000 and short-term benefits of €16,000.

The portfolio has experienced an increase in arrears reflecting the impact of a harsher economic climate with impaired buy to let property loans increased from 38.2% in December 2012 to 42.5% last year.

In spite of the increased level of loan impairments, repossessions executed in 2013 totalled five compared to one in 2012.

The note states: “Haven disposed of one repossessed property in 2013 with a shortfall on disposal of €200,000.”

Four of the five homes repossessed last year were owner-occupier homes, with the fifth a buy-to-let property.


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