MABS, the State-backed Money Advice and Budgeting Service and the Banking and Payments Federation have announced the agreement, saying it will help consumers who are struggling with mortgage debt.
A senior official at the Central Bank has stated that the Sinn Féin bill giving mortgage holders a veto on their loans being sold to so-called ‘vulture funds’ “will have potentially severe unintended consequences”.
The Irish Mortgage Holders Organisation is warning that Ulster Bank’s sale of €1.4bn worth of home loans to US fund Cerberus is evidence that even homeowners who fall behind in their mortgage repayments but engage with their lender can see their loan sold to a vulture fund.
It is natural, but not wise, to push the memory of the chaos caused by sub-prime mortgages to the back of a dark cupboard. The greed and stupidity behind that whizz did trans-generation damage to public finances. Despite that it must be hoped the relevant lessons were absorbed — but were they?
The Government and Central Bank regulators have been accused of letting down customers after it emerged Irish first-time buyers will pay up to €61,641 more in interest costs over the lifetime of their mortgages than anywhere else in Europe.
The only solution to the country’s deep-seated mortgages arrears problem is for banks to write off debt for households who have faced long-term distress, the country’s leading debt advocate has said, as new figures showed the banks were making slow progress in resolving the home loans crisis.