There was an increase of just under two thousand in the number of homeowners falling into short-term arrears in the first three months of this year, according to the latest figures from the Central Bank.
The number of properties in long-term arrears has continued to decline.
However, two thirds of the increase in short-term arrears was due to a reclassification of how accounts are treated when they fall into arrears of up to 30 days. This followed the transfer of a batch of mortgage accounts from one retail bank to another.
The number of principal dwelling home accounts in arrears stood at 48,760 at the end of March. This was an increase of 1,430 compared to the previous quarter. Compared to the same quarter in 2022, this was an increase of 56.
The number of accounts in arrears of up to 90 days was 19,466. This was an increase of 1,977 compared to the last quarter of 2022.
Approximately 1,300 of these were the accounts reclassified as being in short-term arrears following their transfer from one bank to another. It's understood these were accounts transferred from one of the banks which have recently left the Irish market.
The number of accounts in long-term arrears of over 90 days declined by 1.8% in the first quarter compared to the last quarter of 2022 and they fell by 11% compared to the first quarter of 2022.
Of the homes in default, 32,774 or 67% had 'no formal demand issued.' 12% or 5,608 were at the 'formal demand’ stage but had started legal proceedings. 5,536 or 11% were in a legal process.
287 principal private homes were in possession of lenders at the end of March. There were 22 repossessions in the quarter, 17 were surrendered and 37 sold.
The total number of principal dwelling homes with a mortgage stood at 716,560 at the end of March, a decline of 8,460 over the quarter and down 19,278 (2.6%) compared to last year.
Banks held 84% of mortgages with the rest held by the so-called ‘non-banks’ which include credit servicing firms used by investment funds. 76% of accounts in arrears of over one year were with non-banks.
There were 73,259 buy-to-let (BTL) accounts at the end of March. 10,454 of these accounts were in arrears, which was an increase of 113 compared to the fourth quarter of 2022.
7,848 BTL accounts were in arrears of over 90 days. 1,702 accounts were in arrears of over 10 years.
171 BTL properties were in the possession of lending institutions at the end of March.
