The Central Bank announced today that it will undertake a survey of households currently in mortgage debt.
The survey will look at 2,000 Irish households in arrears.
The bank said its purpose is to identify any changes in the income and consumption patterns of mortgage holders since they bought their homes.
''This survey is needed for the Central Bank to understand better the circumstances faced by indebted Irish households in order to scale and target policies more effectively,'' commented Central Bank Governor Patrick Honohan.
He added that all information will be treated confidentially and will not be shared with financial institutions. ''The Central Bank will not have access to borrower contact details,'' he stated.
Ipsos MRBI will carry out the survey on behalf of the Central Bank. Mortgage holders have been randomly selected and will be contacted by letter in advance of the survey which will be a face to face interview with Ipsos MRBI staff in a person's home. Participation is voluntary.
The Central Bank said the survey represents one element of the strategic approach taken on the issue of mortgage arrears, which it describes as a top priority for the bank. The results will be used to supplement data collected as part of the Central Bank's Financial Measures Programme and to conduct economic economic research on the likely developments in the mortgage market here.
Central Bank figures show that 70,911 residential mortgages, representing 9.2% of the total, were more than 90 days behind with their repayments in the three months to the end of December. This is up from 62,970, or 8.1%, at the end of September last year.
More than 53,000 of those were more than 180 days behind with repayments, and their arrears amount to more than €1 billion.
Central Bank survey shows tighter credit standards
The latest survey on lending from the Central Bank reveals that credit standards tightened on business loans. This was the first change recorded since the first quarter of 2010.
The survey also showed that demand from businesses for loans declined again in the first quarter of 2012.
On mortgage lending, the survey also shows that credit standards were tightened while demand for home loans fell in the first quarter of the year.
However, the Central Bank said that credit standards and loan demand were unchanged in respect of consumer credit and credit lending.
The bank said that increased levels of risk perception and lower expectations for economic activity were impacting credit standards, while an increase in the cost of funding and balance sheet restraints were also reported.
The Central Bank predicted that credit standards will continue to tighten on mortgages in the second quarter of this year, while they will remain unchanged in respect of consumer credit and other lending. It also predicts that loan demand from businesses will fall while credit standards will not change.
The survey covers five financial institutions in Ireland and is included in a euro wide survey, which covers over 100 banks. The Central Bank says the survey provides information on the willingness of banks to lend, changes in their credit standards and terms and conditions applied to loans and lines of credit.
