The number of mortgages in early-stage arrears has fallen below 2% of the market for the first time in three and a half years, according to Fitch.
According to the ratings agency's latest Mortgage Market Index, the improving economic situation appeared to be creating a reduction in the number of borrowers falling into arrears.
Fitch has also noted a plateau in the number of long-term arrears in the market, though it notes that "portfolios with concentrations of loans with weaker features continue to deteriorate".
The agency also suggests that the figure have the potential to improve further, pointing to rising property prices over the past year, as well as the "improved macro-economic environment", as reasons for optimism.
"Long-term arrears remain a concern for Irish lenders due to the sheer number of cases that still need to be resolved," says Andrew Currie, managing director at Fitch's Structured Finance team.
"However, the changing sentiment and greater liquidity in pockets of the housing market provides more opportunities for positive resolution outcomes."
Fitch's Mortgage Market Index analyses the performance of residential mortgage-backed security transactions and banks’ balance sheets to gauge the state of the market.
Bank of Ireland increases SME lending
Bank of Ireland says it has approved €3.2bn worth of credit to SMEs in the first nine months of the year, a 18% increase on the same period of 2013.
The bank said it had received 46,000 credit applications during that time, up 8% on the first nine months of last year, and had approved 87% of those.
Bank of Ireland claims it now holds more than half of all non-property lending to SMEs and agricultural sectors.
