While there is a some improvement in this week's mortgage arrears figures from the Central Bank there is no getting away from the fact that the most stubborn arrears are still not being faced up to said Brokers Ireland.
Rachel McGovern, Director of Financial Services at the organisation which represents almost 1,300 members said: ”The pretence that arrears capitalisation, a massive 33pc of so-called restructured mortgages, is a resolution to mortgage arrears should long ago have been dispensed with”
“Those in arrears for over 720 days constitute 41pc of the numbers of arrears cases but a staggering 90pc of the amount of total arrears outstanding, a figure that has changed little over recent years.
“There is still a huge element of extend and pretend going on. These are people who are not being facilitated with solutions, they are in a bind and unable to get on with their lives.”
Ms McGovern said the Central Bank needs to face up to the situation and enable lenders find “real solutions to this terrible dilemma.”
“Almost a decade on from the financial crisis there is a great deal of the devastation felt by individuals and families still unresolved.”
Ms McGovern welcomed the Central Bank amendments to the Consumer Protection Code to assist mortgage holders in switching to get better deals.
“It is no surprise that consumers don’t switch their mortgages because they don’t realise how much they could save. Study upon study has shown that even well-educated people have difficulty in understanding their own financial affairs. While today’s changes are welcome we do have a serious concern about the growing administrative burden regulators are placing on consumers,” she said.