Central Bank warns on interest-only mortgages

A significant number of interest-only mortgages are due to revert back to principal-and-interest repayments in the next two years, which will result in higher repayments for the borrowers concerned.

16th July, 2014
The arrears rates on these mortgages are higher than standard mortgages, the Central Bank said

A significant number of interest-only mortgages are due to revert back to principal-and-interest repayments in the next two years, which will result in higher repayments for the borrowers concerned and could lead to an increase in mortgage arrears, the Central Bank has warned.

Interest-only mortgages were mainly issued to buy-to-let investors between 2005 and 2008 and were primarily used in Dublin and for the purchase of apartments.

The full mortgage repayments will likely be more than the...

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