Late loan payments continue to rise

The Central Bank of Ireland reports that the total amount of mortgages that are now classified as long-term arrears have hit record highs, topping the charts at almost 6 billion euro. There are many types of properties that can and have become part of this number, but the largest group tends to be that of more residential properties.

In the previous quarter, mortgages in arrears were down significantly. Sadly, the largest category in mortgages in arrears, residential properties that are two years or above in late payments, is still increasing. The buy-to-let sector has been the largest subcategory of residential properties in arrears; 17.62% of the total is in arrears.

In April 2019, only 118 of all applications of mortgages for buy-to-let properties were approved while in April 2018 154 mortgages were approved. There was a 30% decrease within the same months separated by only one year, according to the Banking and Payments Federation Ireland (BPFI).

This huge scale down may be due to Brexit, or perhaps the seeming unreliability of buy-to-let properties ability to bring in …

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The future is refinancing

Getting a loan can be extremely hard to achieve, especially in today’s Irish economy. With higher interest rates than usual, many people who have successfully gotten a loan may be looking for an opportunity to refinance in a few years to come.

Refinancing would not be beneficial for those people who are repaying loans. This is largely due to the banks uncertainty as the Brexit date draws closer. Banks are afraid that there will be an economic crash that will leave people with loans unable to pay the banks back at their projected rate. These fears are outwardly displayed in the form of high interest rates and low amounts of accepted loan applications.

The current interest rates rely heavily on the type of loan that you are receiving, but can vary significantly. The most common forms of loans are mortgage, auto, and personal. In any of these agreements, the interest rates are high in comparison to previous years.

Refinancing in the future may be key for many of the people who are currently being approved to take out …

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