Mortgage rules to ‘target low hanging fruit’

Strict new deadlines for banks to conclude deals with mortgage holders in arrears of more than three months will see a rise in repossessions because it will force banks to “go after the low-hanging fruit”, warned the barrister Ross Maguire from the advocacy group, New Beginning.

Under pressure from the troika, the Central Bank has given financial institutions tougher targets in tackling the mortgage arrears crisis. The banks must now conclude arrangements with 15% of customers in arrears over 90 days by the end of this year and 25% of customers by the end of next March.

They must also have offered solutions to 70% of customers in arrears by more than 90 days by the end of next March.