More mortgage holders opt out of payments

Ireland’s mortgage arrears crisis is set to deteriorate further as more borrowers deliberately opt not to make repayments.

New research by Davy warns there is a growing culture of “strategic non-payment” of debt following a “confused regulatory response” to the ongoing crisis, which the stockbroker claimed included “inappropriate constraints” on banks from contacting delinquent borrowers.

Davy predicts banks will have to repossess a greater number of properties than to date to remove the problem posed by borrowers deliberately choosing to miss repayments on housing loans.