Banking

Credit unions call for levy to rescue mortgage holders stranded with vulture funds

Head of ILCU says 22,000 borrowers, being charged up to 9 per cent rate, are in danger of defaulting unless supported to switch lender

Irish League of Credit Unions says the government should set aside part of the €87 million annual banking levy to help 22,000 mortgage holders switch to domestic lenders

More than 20,000 mortgage holders will fall into arrears unless the government moves to help borrowers whose loans are held by so-called vulture funds, the Irish League of Credit Unions (ILCU) has warned.

The ILCU said the government should set aside a portion of the €87 million annual banking levy to fund debt relief, restructuring and other solutions to help 22,000 mortgage holders switch from non-bank entities to domestic lenders.

David Malone, chief executive of ...