49,000 mortgages restructured by end of October - Department of Finance

Thursday 12 December 2013 14.27
There was a fall in the number of temporary restructures as banks made more permanent deals
There was a fall in the number of temporary restructures as banks made more permanent deals

More than 49,000 mortgages had been restructured by Irish banks by the end of October, according to data from the Department of Finance.

The latest Mortgage Arrears Data shows that 49,032 mortgages on principal dwellings had been permanently restructured by the end of the month - 3,855 more than by the end of September.

More than a quarter of cases involved arrears capitalisation, where some or all of the arrears owed are added to the principal with a view to it being paid off over the lifetime of the mortgage.

Almost 20% of restructures saw the introduction of fixed repayments that were greater than the cost of interest only repayments, 11% of cases saw the loan term being extended while 10% involved a split mortgage.

Nearly a third of the restructuring arrangements involved a combination of different measures.

Meanwhile, there were 25,438 temporary restructuring agreements in place by the end of October – down more than 2,900 on September.

The majority of these deals saw mortgages switch to interest only repayments, while more than a quarter involved fixed repayments that were greater than the cost of interest only repayments.

According to the Department of Finance, Irish banks had almost 700,000 mortgages for principle dwellings on their books by the end of October, 16.9% of which were in arrears.