So what can distressed mortgage-holders take away from last week’s grilling of four bank bosses (AIB, Bank of Ireland, Ulster Bank and PTSB) by the Oireachtas Finance Committee members?
Firstly, the Committee was given a confused and incomplete picture of the ‘long term and sustainable’ mortgage solutions that the banks are being compelled to put in place by the Central Bank.
Three out of four of the banks categorically insisted they are not writing down arrears though most advisers who are representing clients say they do, but only on a case-by-case basis and especially with buy-to-let owners.
Meanwhile, the banks have sent out at least 10,000 letters threatening repossession to customers who they claim have not ‘engaged’, some for up to three years or who are not paying enough or anything, off their loans.
‘Strategic defaulters’, claim the banks are people who have sufficient income, savings or other assets to pay their loans with but choose not to.
However, many advocacy groups say a distinction has to be made for homeowners who are not paying their mortgages because they are forced by other unsecured creditors like car finance lenders or credit card providers to pay those loans first.
