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|
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