Ireland’s banks have met the current targets set out for them to propose solutions to struggling mortgage owners, according to the Central Bank.

Banks had been required to propose sustainable solutions to 20% of cases where mortgages were in arrears by the end of June. This rose to 30% of cases by the end of September.

According to an audit by the Central Bank, all banks - namely AIB, Bank of Ireland, Permanent TSB, Ulster Bank, ACC Bank and KBC Bank - had made sufficient proposals to meet these targets.

Overall the banks had proposed solutions in 43% of cases by the end of September, well in excess of the target set out as part of the Mortgage Arrears Resolution Target framework.

However the Central Bank said that some issues with these proposals were identified, which would need to be addressed to ensure any solution was sustainable in the long-term.

The authority said that, in some cases, only short-term changes to the terms of a loan were proposed where there was no sign of the borrower’s circumstances improving and no clarity on what shape a longer-term solution could take.

Some proposals also lacked important information, such as confirmation of the borrower’s income, while some cases that were taking a legal route had a lack of evidence of follow-up.

The Central Bank’s audit showed that more than 60% of proposed solutions between April and June were in the surrender or repossession category, compared to 55% between July and September.