Approximately 7,000 homeowners across Ireland are currently being charged interest rates of at least 8.5% on their mortgages by vulture funds, according to a newly released Oireachtas paper.
The document highlights the financial strain being placed on these households, who are paying significantly more than the standard variable rates typically offered by mainstream lenders. These punitive rates come at a time when many families are already struggling with the increased cost of living.
To address this concerning situation, the paper suggests that the Government could look to Britain for potential solutions. One proposal mentioned involves the introduction of interest-free equity loans similar to those offered under the help-to-buy scheme.
Such a measure could provide much-needed relief to affected homeowners who have seen their mortgage costs soar after their loans were sold to these investment entities, commonly known as vulture funds.
The paper’s findings are likely to add fuel to ongoing debates about regulation of non-bank lenders and the protection of consumers whose loans have been transferred to these funds without their consent.
Housing advocates have long argued that homeowners whose mortgages are sold to vulture funds often face less favorable terms and fewer consumer protections than those with loans held by traditional banks.
The revelation comes amid broader concerns about housing affordability and mortgage accessibility in Ireland, with calls growing for more robust government intervention to protect vulnerable homeowners.