Daly dismayed at figures released by Davy Stockbrokers on Mortgage Arrears

Kerry Senator Mark Daly has spoken of his disappointment at figures released today in an analysis of the mortgage arrears situation from Davy Stockbrokers. Despite the Government’s introduction of the Personal Insolvency Bill these figures show the mortgage crisis is not over and the government and banks can not be allowed to become complacent.

 According to Davy Stockbrokers, the number of owner occupiers in arrears of over 90 days rose to 78,000 in the first quarter of this year, over double the rate compared to the first quarter of 2010.  However, arrears rates for buy to let mortgages – which account for almost 25% of total mortgage lending – are running at over two times the owner occupier rate.

 Senator Daly stated “The figures released today show that there are still thousands of families throughout the country struggling with their mortgages. The Government must look at implementing a State support structure. Organisations such as MABS do great work but more still needs to be done”.

 The covered banks’ mortgage book loan losses are now set to exceed the €9bn in last year’s stress test by €1-€2.5billion according to the Davy Report this can not be allowed to continue. Fianna Fáil has proposed an independent office to deal with personal and mortgage debt.  This would take account of the all of the financial pressures people are under and work with borrowers.

 Daly said “The banks need to offer practical solutions for people facing this difficulty.If the banks are not prepared to bring forward measures to deal with the crisis on their own then the Government will have to act and compel the banks to deal with the crisis.”

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