MORTGAGE DEFAULTS WILL peak at nearly 20 per cent in early 2013, according to a new report from the credit rating’s agency Moody’s.
The scale of negative equity combined with new insolvency legislation and the ongoing economic difficulties means that there are still “substantial losses to be realised on Irish residential mortgage loans”.
The report, ‘Key Drivers of Default in Irish RMBS Pools Will Persist in 2013′, breaks down the levels of mortgage arrears on a county by county basis. Cavan and Laois have the highest rate of mortgage defaults, which is based on people not paying their home loan for 90 days, with Dublin and Cork among the lowest. 16 per cent of homes are currently in arrears.