Dáil Éireann Debate, Tuesday - 13 February 2018
136. Deputy Joan Burton asked the Minister for Finance if an analysis of home mortgages in which currently only the interest is being paid will be provided by the age of the mortgage holders in five-year age groups, in tabular form; and if he will make a statement on the matter. [7038/18]
Amharc ar fhreagraThe Central Bank has informed me that the age profile of those on Interest Only mortgages is not readily available. However, a paper written by Fergal McCann of the Central Bank, called "Resolving a Non-Performing Loan crisis: The ongoing case of the Irish mortgage market", published in December last year, provides some information.
The following table from the paper shows that, of all those mortgages not in arrears that are currently making full payments, 5.23% of them are currently on an Interest Only, meaning that they are facing future instalment increases due to a move back to capital and interest. The figure attached shows that 15.94% of those borrowers with one month of arrears (1-30 DPD), who are currently fully paying their contracted loan amount, are on Interest Only. For loans in deeper states of arrears that are currently making full repayments, roughly one third of them are currently on Interest Only. The full paper is available at https://www.centralbank.ie/docs/default-source/publications/research-technical-papers/10rt17---resolving-a-non-performing-loan-crisis-the-ongoing-case-of-the-irish-mortgage-market.pdf?sfvrsn=5
Table 12: Share of Loans Facing Future Instalment Increases
|
DPD Bucket |
Fully Paying |
Missing Payment |
|
0 dpd |
5.23 |
n/a |
|
1-30 |
15.94 |
14.82 |
|
31-60 |
22.87 |
18.95 |
|
61-90 |
32.48 |
20.15 |
|
91-180 |
32.65 |
18.49 |
|
181-365 |
33.43 |
18.04 |
|
366-720 |
37.33 |
15.57 |
|
720+ |
33.45 |
10.39 |
