NI mortgage defaults rise to record levels

An increasing number of people in Northern Ireland are in trouble paying their mortgage, it emerged today.

An increasing number of people in Northern Ireland are in trouble paying their mortgage, it emerged today.

Almost 600 actions for mortgage possession were recorded for the first three months of this year, an increase of 21.8 per cent on the same period a year ago.

With average selling prices moving above the £100,000 sterling (€140,000) mark, the quarterly rate of cases against defaulters under the threat of having their home repossessed is at its highest since 2000.

The cost of new houses, flats and maisonettes has soared, but a report also revealed increasing financial problems for owners unable to meet demands for repayments.

READ MORE

The Department for Social Development disclosed that average prices for new property has risen by £10,000 to £108,000. They varied between £74,000 in the Strabane district to £163,100 in north Down. Prices for flats and maisonettes increased by £11,000 to an average of £105,000.

Marital breakdown, unemployment, illness and people living beyond their means are among the main reasons for repossession.

Representatives of building societies and estate agents in Belfast today said they were surprised at the increase in actions. Some claimed it could be down to borrowers already under credit card pressure and unable to obtain standard mortgages, but who had been prepared to pay higher interest rates to specialist lenders.

PA