Newstalk
Newstalk

13.54 20 Sep 2012


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Ratings agency Moody’s says debt write-down is the only way to fix the Irish housing market.

It has published a far-reaching report on residential mortgages here.

It says the mortgage crisis will only peak next year.

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It is also suggesting that 1-in-5 homes will then be in default.

The study looked at €66 billion worth of home loans here not including buy-to-let properties.

It says it expects that the mortgage arrears crisis will peak next year and will see 20% of all mortgages in arrears.

That compares to the latest figures from the Central Bank which put arrears at just 10.9%.

The rating agency claims from April to July the 90-plus day delinquency trend and 360-plus day delinquent loans reached a new peak.

It says they rose steeply to 15.19% from 13.99% and to 6.58% from 5.50% respectively.

The paper says Irish house prices have already fallen by 50.3% between September 2007 and July 2012 and it expects that they will fall a further 20% from the levels seen today.

Karl Deeter is from Mortgagebrokers.ie

He says that unpalatable as it is it is the only answer.

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href="http://www.newstalk.ie/2012/news/your-say-is-this-the-way-forward-in-the-mortgage-crisis/">[Your say] Is this the way forward in the mortgage crisis?

href="http://www.newstalk.ie/2012/news/concern-expressed-over-rising-mortgage-arrears/">Concern expressed over rising mortgage arrears

href="http://www.newstalk.ie/2012/news/number-in-long-term-mortgage-arrears-increases/">Number in long-term mortgage arrears increases


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