Lenders need to be realistic on arrears, says Flac

The legal rights group Flac (Free Legal Advice Centres) threw its support behind a report issued by Davy Stockbrokers yesterday, urging banks to take a radical approach to dealing with mortgage arrears.

“Davy’s report is another stark indicator of the need to ensure that, even beyond the introduction of a new personal insolvency regime, lenders must be more realistic and reasonable in their proposals around mortgage debt for Irish consumers,” said Flac director general Noeline Blackwell.

At the end of March there were 78,000 residential mortgage holders — 10.2% of the total — in arrears of 90 days or more.