skip to main content

Mortgage arrears continue to fall in first quarter

Both short and long term mortgage arrears declined in the first three months of the year
Both short and long term mortgage arrears declined in the first three months of the year

The level of arrears on people's home mortgages continued to fall in the first quarter of 2016 - the 11th quarter of declines in a row.

New figures from the Central Bank show that a total of 85,989 mortgage accounts for principal dwelling houses were in arrears by the end of March, down 2,303, or 2.6%, from the fourth quarter of 2015. 

The figure represents 11% of all mortgage accounts. 

Both short and long term arrears declined in the first three months of the year.

The Central Bank said the number of accounts in arrears for less than 90 days fell by 0.3% to 26,293 - or 4% of the total. 

Today's figures also show that the number of accounts in arrears for over 720 days fell by 1.5% to 35,792. This was the third decline in this category since the series began.

The Central Bank pointed out that this represented a year on year fall of 5.6% for accounts in arrears for over 720 days and contrasts significantly with the fourth quarter of 2014 when the figure was an increase of 12.5%.

The Central Bank said that about 120,447 home mortgages were classified as restructured by the end of March. Of these, 87% were meeting the terms of their new arrangement - the highest level since the series began. 

It noted that the largest increases in restructures were seen in the categories of arrears capitalisation (30%) and permanent split mortgages (21%).

A total of 9,641 new restructure deals were also agreed in the first three months of the year. 

Today's figures show that the total number of buy-to-let mortgages which were in arrears by the end of March fell to 27,891, or 20% of the market, from 28,760 at the end of December.  

The number of buy-to-let mortgage accounts in arrears for over 90 days fell by 3.5% during the months from January to March to 22,516.

A total of 14,924 buy-to-let accounts were in arrears for over 720 days, which represented 11% of the total outstanding balance on all buy-to-let accounts.

The Central Bank also saw a fall of 4.8% in the number of buy-to-let accounts where a rent receiver was appointed. This followed a 30% increase in the previous three month period.