The Central Bank of Ireland has sounded the alarm on the alarming threat posed by investment funds to struggling homeowners. In the final quarter of last year, a staggering 47,700 individuals found themselves unable to meet their mortgage repayments, marking a concerning trend. Most concerning, however, is that these mortgages have fallen into the hands of investment funds, notorious for their predatory practices.
These funds are charging exorbitant interest rates, sometimes reaching a staggering 8-9 percent, far beyond fixed rates. Shockingly, some have even hiked rates by up to 10 times in the past year and a half. This has left many homeowners in dire straits, with 29,034 accounts classified as in arrears by December’s end.
Of particular concern is the fate of long-term delinquents, with 20,268 accounts remaining unpaid for over two years. Financial institutions, in a bid to rid themselves of these liabilities, are selling loans to investment funds, leaving homeowners at their mercy.
The Irish government’s lack of significant action against these funds has raised eyebrows. Despite a commitment to providing essential services, the government has yet to impose meaningful restrictions on investment funds. This has allowed these entities to thrive, exacerbating the housing crisis and leaving homeowners vulnerable to exploitation.
In essence, investment funds are profiting while homeowners suffer. Without intervention, this troubling trend looks set to continue, highlighting the urgent need for regulatory measures to protect vulnerable homeowners in Ireland.