No deal agreed in 81% of mortgage arrears cases - Department of Finance

Thursday 10 April 2014 16.10
Mortgages in long-term arrears represent more than 10% of all owner-occupier loans on the books of Ireland's main banks
Mortgages in long-term arrears represent more than 10% of all owner-occupier loans on the books of Ireland's main banks

A permanent solution has been agreed in less than 20% of mortgages that have in arrears for more than 90 days, according to data from the Department of Finance.

Mortgages with arrears of more than 90 days represented 11% of all owner-occupier accounts at the country's six main banks in late February, with mortgages in arrears under 90 days making up a further 5%.

The number of permanent restructuring deals was up slightly compared to January, while the number of non-restructured and temporarily restructured deals both fell.

A quarter of the permanent restructuring deals struck involved an extension to the term of the loan, according to the data, while 28% saw the arrears being added to the principal of the mortgage.

Around 15% of cases saw the mortgage being split, while a similar proportion involved changes to the repayments or interest rate.

Meanwhile in the buy-to-let market, permanent solutions were offered in just 15% of mortgages in arrears for more than 90 days by the end of February.

Mortgages with arrears of 90 days or more represented more than 21% of all buy-to-let mortgages held by the country’s main banks, with mortgages in arrears for less than 90 days making up a further 5.5%.

One third of permanent deals saw the arrears being added to the principal of the mortgage, while 20% involved a term extension.

Almost a quarter involved a mixture of arrangements as part of the solution.