New figures from the Central Bank today show that the number of home mortgage accounts in arrears for over 90 days at the end of June reached the lowest level since 2009.
The Central Bank said the number of principal dwelling house accounts in arrears over 90 days was 24,583 by the end of June - or 3.5% of all home accounts outstanding.
It noted that 75% of mortgage accounts in arrears over 90 days are held by non-banks.
Today's figures show that in annual terms, the number of home mortgage accounts in arrears over 90 days fell by 13%.
They also reveal that the number of accounts in long-term arrears - greater than one year - was 18,044, a fall of 10% on the second quarter of last year,
Meanwhile, the number of accounts in early arrears - less than 90 days - decreased by 25% on the same time in 2024.
The Central Bank said a total stock of 57,022 home mortgage accounts were categorised as restructured at the end of June, 8.2% of total mortgage accounts outstanding.
But it said the total number of restructure arrangements increased by 1,975 accounts over the quarter and marks the first increase in restructures since the first quarter of 2023.
Of the total stock of restructured accounts, 84% were not in arrears, while 87% were meeting the terms of their current restructure arrangement.
The largest two cohorts of restructured home mortgages were in split mortgage and arrears capitalisation arrangements, respectively, unchanged from the previous quarter, the Central Bank added.
Fergal O'Leary, Chief Commercial Officer at mortgage lender Núa Money, said today's Central Bank figures marked "encouraging progress", but added that the country can not afford to be complacent.
"The economic outlook is softening, with slower growth forecast from 2026, potential rises in unemployment, and uncertainty linked to international trade tensions," Mr O'Leary said.
"At the same time, house prices and average mortgage drawdowns remain at record levels, which could leave some borrowers more exposed if conditions change. While arrears are declining, they remain high by international standards, and we need to do better," he stated.
He said of particular concern is the significant cohort of homeowners who restructured their loans after the financial crash.
"Many are now in their 50s and 60s, not in acute distress but effectively stuck in split mortgage arrangements. These borrowers often meet the terms of their restructured deals but face major obstacles if they want to switch lender or clear their mortgage," he noted.
Mr O'Leary said that with retirement approaching, it is increasingly important that these borrowers have access to refinancing options that allow them to bring their mortgage to a conclusion in a sustainable way.
"More attractive offers from both banks and non-bank lenders would let borrowers spread repayments over a longer period and avoid the risk of large bullet payments at maturity. While that may mean higher monthly repayments for some, it provides the incentive of building positive equity as house prices rise," he said.
"Irish borrowers, lenders and policymakers simply cannot afford to be complacent about arrears. In the run-up to the 2008 crash, few saw what was around the corner. Today’s positive data must be treated as a foundation to do better," he concluded.
