The Irish Mortgage Market: Stylised Facts, Negative Equity and Arrears
This paper uses loan-level data from the residential mortgage books of four Irish credit institutions, as at December 2010. The focus of the paper, is to provide an overview of the structure and condition of these housing loan books. This includes a description of borrower categories, interest rate profiles, repayment structures, property types, arrears accruals and the regional distributions of these loan and borrower characteristics across Ireland. Because it is possible to secure more than one loan on an individual house, we distinguish the number of properties underlying the residential mortgage book. Additionally we combine the data with house price data in order to generate estimates on the amount of housing equity in the Irish mortgage market. We focus on the properties in negative equity, in particular. Our findings suggest that approximately 31 per cent of mortgaged properties, representing over 47 per cent of the mortgage books’ outstanding loan balances were in negative equity at the end of 2010. Of the mortgaged properties in negative equity, 8 per cent had also accrued more than three months worth of arrears on their mortgage loans.
|Date of creation:||Nov 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (01) 671 6666
Fax: (01) 671 6561
Web page: http://www.centralbank.ie
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lydon, Reamonn & McCarthy, Yvonne, 2011.
"What Lies Beneath? Understanding Recent Trends in Irish Mortgage Arrears,"
Research Technical Papers
14/RT/11, Central Bank of Ireland.
- Reamonn Lyndon & Yvonne McCarthy, 2013. "What Lies Beneath? Understanding Recent Trends in Irish Mortgage Arrears," The Economic and Social Review, Economic and Social Studies, vol. 44(1), pages 117–150.
- David Rae & Paul van den Noord, 2006. "Ireland's Housing Boom: What has Driven it and Have Prices Overshot?," OECD Economics Department Working Papers 492, OECD Publishing.
- Morgan Kelly, 2007.
"On the likely extent of falls in Irish house prices,"
200701, School of Economics, University College Dublin.
- Kelly, Morgan, 2007. "On the likely Extent of Falls in Irish House Prices," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI), vol. 2007(2-Summer), pages 42-54.
- Kelly, Robert & McCarthy, Yvonne & McQuinn, Kieran, 2012.
"Impairment and negative equity in the Irish mortgage market,"
Journal of Housing Economics,
Elsevier, vol. 21(3), pages 256-268.
- Kelly, Robert & McCarthy, Yvonne & McQuinn, Kieran, 2011. "Impairment and Negative Equity in the Irish Mortgage Market," Research Technical Papers 9/RT/11, Central Bank of Ireland.
- Roche, Maurice, 2003. "Will there be a Crash in Irish House Prices?," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI), vol. 2003(4-Winter), pages 1-16.
- Luci Ellis, 2008. "How many in negative equity? The role of mortgage contract characteristics," BIS Quarterly Review, Bank for International Settlements, December.
- Trevor Fitzpatrick & Kieran Mcquinn, 2007.
"House Prices And Mortgage Credit: Empirical Evidence For Ireland,"
University of Manchester, vol. 75(1), pages 82-103, 01.
- Fitzpatrick, Trevor & McQuinn, Kieran, 2004. "House Prices and Mortgage Credit: Empirical Evidence for Ireland," Research Technical Papers 5/RT/04, Central Bank of Ireland.
- David Duffy, 2010.
"Negative Equity in the Irish Housing Market,"
The Economic and Social Review,
Economic and Social Studies, vol. 41(1), pages 109-132.
When requesting a correction, please mention this item's handle: RePEc:cbi:wpaper:12/rt/11. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Richard Smith)
If references are entirely missing, you can add them using this form.