The scale of the mortgage arrears crisis among the subprime market has been shown with figures emerging that suggest almost 60 per cent of that market is struggling.
The state of the subprime mortgage book has been described as “appalling” by Fianna Fáil spokesman on finance Michael McGrath, who highlighted the figures and called on the Government to set targets for the resolution of subprime arrears cases.
“The Minister for Finance, Michael Noonan, has confirmed that 57 per cent of the family home subprime mortgage book is in arrears of 90 days or more,” he said.
“Of a total subprime mortgage book of €3.316 billion, accounts amounting to a staggering €1.88 billion are in arrears of over 90 days. Despite this, the Minister has confirmed that the mortgage arrears targets programme has still not been extended to subprime mortgages.”
He added that one in every four home repossessions since the beginning of 2012 relate to subprime mortgages.
“The simple truth is that the Government has shown scant regard for the 18,000 subprime mortgage holders – many of whom are now in real danger of losing their family home.
“At this point, we have no indication of type of solutions being offered to sub-prime mortgage holders.”