MyHome.ie Blog
  • MyHome Living
  • News
  • RetroFit Hub
  • Buyers Advice Hub
  • Selling
  • Renting
  • Mortgages
  • Property Report
MyHome.ie Blog
  • MyHome Living
  • News
  • RetroFit Hub
  • Buyers Advice Hub
  • Selling
  • Renting
    • Mortgage Learning Center
    • Calculators
    • Best Mortgage Table
  • Property Report
    • All Properties
    • Houses For Sale
    • Apartments For Sale
    • Available To View
    • Overseas Holiday Homes
      • Properties For Auction
      • Upcoming Auctions
      • BER Assessors
      • Property Conveyancing Solicitors
      • Pre-Purchase Surveyors
    • Find Agents
    • All Properties
    • Houses To Rent
    • Apartments To Rent
    • Available To View
    • Share
      • Irish Holiday Homes
      • Overseas Holiday Homes
  • New Homes
    • For Sale
    • To Rent
    • Auction
      • Residential Land
      • Commercial Land
      • Farm Land
      • Farms
      • Sites
    • MyHome Living
    • Buyer Advice Hub
    • Property Report
    • Property Price Register
    • Price Changes
  • Mortgages
    • Rental
    • Holiday Homes
    • Commercial
    • Sharing
Advertisement
  • Home
  • Uncategorized
  • Rise in repossession predicted in Ireland by ratings agency Fitch
Uncategorized
Aug 8, 2013 - 14:41

Rise in repossession predicted in Ireland by ratings agency Fitch

The MyHome Newsdesk
By The MyHome Newsdesk
Share this article
Facebook Share Twitter Share Linkedin Share Email Share Whatsapp Share
Rise in repossession predicted in Ireland by ratings agency Fitch

Fitch Ratings expects the number of repossessions to rise in Ireland following the enactment of the Land and Conveyancing Law Reform Act. However, it adds that the Act will also create “incentives for lenders and borrowers to agree longer-term alternative repayment arrangements”.

These arrangements will likely include the use of tools such as split mortgages or trade-down products for borrowers in negative equity to be used first, followed by Personal Insolvency Arrangements (PIAs). Repossession or voluntary surrender will be a last resort as “lenders may not want to repossess a distressed property and crystallise a larger loss”.

“It is still early to estimate how many mortgages will be subject to the three main options of restructuring, PIA and repossession,” Fitch says, but notes that it is likely that lenders will deploy their own restructuring tools first, before moving on to a PIA if necessary.

“They view a PIA as a niche product, most suitable where a borrower has various creditors and types of debt. We maintain our view that PIA is not an easy route to debt forgiveness, as it would be likely to entail relatively stern restrictions on living costs,” Fitch said in a statement.

Advertisement

With regards to securitised mortgages, Fitch said it would be “difficult” to predict the impact of the aforementioned repayment arrangements, but noted that they may begin to halt the rise in arrears.

“ Broadly, we would expect the warehoused portion of a split mortgage to translate into a debit on principal deficiency ledgers. Trade-down mortgages may lead to a mild prepayment increase, although it is not yet clear if these will be widely used by banks,” Fitch said.

Source: The Irish Times

Subscribe to our weekly MyHome Living eZine today

Processing your request...

You are subscribed now!

<

  • Tags
  • borrowers
  • Fitch
  • Land and Conveyancing Law Reform Act
  • mortgages
  • negative equity
  • personal insolvency
  • personal insolvency arrangements
  • rating's agency
  • repossessions
  • split-mortgages
The MyHome Newsdesk
By The MyHome Newsdesk
Share this article
Facebook Share Twitter Share Linkedin Share Email Share Whatsapp Share

Helpful Links

Find your home on MyHome
Read more Articles
Calculate what you can afford to borrow
Welcome to the Retrofit Hub
Advertisement
Advertisement

Related News

What is a Heat Pump?
Uncategorized

What is a Heat Pump?

Feb 27, 2025
Living Cities Initiative
Uncategorized

Living Cities Initiative

Jan 14, 2025
Digital Services Act
Uncategorized

Digital Services Act

Mar 31, 2024
Avant Money and Finance Ireland announce new rates
Uncategorized

Avant Money and Finance Ireland announce new rates

Dec 09, 2021
Average deposit of first-time buyer was €52,000 in first half of the year
Uncategorized

Average deposit of first-time buyer was €52,000 in first half of the year

Dec 07, 2021
Frequent And Popular Searches
MyHome.ie Blog
Help
Jobs
About
Equality Guidelines
Brand Safety
Contact
Terms & Conditions
Cookie Policy
Privacy Policy
Digital Services Act
Sitemap
© Copyright MyHome.ie 2025
Advertisement