1/3 to 1/2 of Buy to let investors withholding Mortgage Payments in Strategic Arrears!
Gregory Connor over at the Irish Economy Blog contends that:" Among the buy-to-let subset, the proportion of strategic arrears in Ireland is likely higher than 35%, and may be greater than 50%, reflecting the particular features of this sub-market (wealthier households, a larger proportion purchased near the height of the boom). "
The Irish Economy » Blog Archive » How Large Are Strategic Arrears in the Irish Mortgage Market?
This is a huge problem for the taxpayer and those who rely on any State Services. Very wealthy people are chancing their arm and seeking to strong arm the banks into giving them a debt write down.
They know that given their negative equity they are not candidates for bank loans to mop up cheap property at the bottom of the market. They are trying to help themselves to debt relief.
There is evidence to suggest that the growth of mortgage arrears is linked in many cases to these strategic arrears where people who can afford repayments choose not to pay their negative equity property loans.
Again there is a prospect particularly with wealthy borrowers that they will inherit more wealth in the course of their lives.
Many will be desperately seeking to secure debt write downs before they come into their inheritances.