Tracker mortgage scandal far from over, according to financial advisor

The Central Bank's investigations surrounding the tracker mortgage scandal are far from over, according to a leading financial advisor.

It has recently emerged that a further 1,100 AIB customers have been overcharged interest on their mortgage with the banks subsidiaries EBS and Haven.

Over 40,000 borrowers have been caught up in the controversy since news of the overcharging broke in 2015.

Last year Permanent TSB was fined 21 million euro by the Central Bank for its involvement. Mortgage broker and debt adviser Michael Dowling says fines are still to be issued to other lenders.

"We've only had one bank fined at the moment and that's Permanent TSB for what went on with the tracker scandal originally."

"All the other banks have made provisions for anticipated fines from the Central Bank but the they haven't issued fines to the other bank. So the work of the Central Bank is not finished yet."

Mortgage repayments

Another issue is that with people out of work due to Covid-19, less people will be able to restart their mortgage repayments.

Michael Dowling thinks that close to 50% of people on payment holidays will be faced with this problem.

"Well unfortunately we're going to have significant numbers of people who won't have jobs to go back to after the current pandemic."

"Some people will be going back to jobs where their income has reduced. With 70,000 odd people currently on payment breaks, at least half of those people won't be able to pay their mortgage in the long term."

In general, the number of new mortgage agreements fell by 48% in May compared to the same month last year.

The Central Bank of Ireland says it is the biggest annual drop since records began.

But the number of mortgages renegotiated that month increased by 27% compared to May 2019.

Most Read in Ireland