Number of permanent mortgage restructures continue to rise

Thursday 13 March 2014 15.14
The total mortgage accounts in arrears rose to 115,631 at the end of January from 114,921 at the end of December
The total mortgage accounts in arrears rose to 115,631 at the end of January from 114,921 at the end of December

New figures from the Finance Department show that the number of mortgage accounts in arrears of over 90 days has fallen from 79,782 at the end of December to 79,427 at the end of January.

The total mortgage accounts in arrears (in arrears for one day or more) rose to 115,631 at the end of January from 114,921 at the end of December.

The Department said this increase may be due to both seasonal factors and the introduction of new payment processing after the banks' implementation of SEPA. 

Today's data also shows that engagement between banks and consumers has led to 53,969 permanent mortgage restructure agreements, an increase of 2,781 since the end of December.

The Department noted a significant rise in the number of split mortgages from 2,521 when this data series began in August to 7,131 by the end of January.

The Finance Department information differs from the Central Bank as it relates to data from the six main banks only - AIB, Bank of Ireland, Permanent TSB, ACC, KBC Bank Ireland and Ulster Bank. These lenders make up 90% of the market.

Today's figures also show that the number of buy to let mortgages in arrears at the end of January rose to 34,139 from 33,831 at the end of 2013. The number in arrears of over 90 days rose by 216 accounts since the end of December to 26,710.

Finance said that engagement between BTL mortgage holders and their lenders had led to 10,532 permanent restructures.

The six banks also said that they have 3,721 rent receivers in place at the end of January, up 542 at the end of December.