Homeowners adopting 'wait and see' tactic on arrears, Honohan claims

The Central Bank governor has said some struggling mortgage customers have adopted a 'wait and see approach' to dealing with their arrears.

The Governor of the Central Bank claims some struggling mortgage customers have adopted a 'wait and see approach' to dealing with their arrears.

In a speech today, Patrick Honohan said that while he doesn't believe there are strategic mortgage defaulters, some borrowers are not facing up to the fact that they must repay their loans.

He said the scale of the mortgage arrears crisis in Ireland reflects the absence of immediate consequences for non-payment of loans, and that this lack of consequences has created a degree of moral hazard.

The governor said some people in arrears were not facing up to dealing their problems - because of a sense of moral outrage at banks, politicians and the wider economy.