Short term mortgage arrears up 3% in third quarter

December 16, 2023

The number of mortgages on private homes that were in short term arrears of less than 90 days rose 3% between July and September compared to the previous quarter.

But new Central Bank data today also shows that the number of mortgages in arrears over 90 days was unchanged compared to the April to June period.

Overall, of the 708,810 private residential mortgages in existence here at the end of September, 47,325 were in arrears, up just under 1% on the quarter before.

“This increase can be attributed to the decline in the number of accounts in longer term arrears (over one year), while the number of accounts in early arrears (up to 90 days) has increased by 482, driven primarily by the non-banks,” the Central Bank said.

A total of 29,298 mortgages were in arrears of more than 90 days at the end of September, up 4.1%, today’s figures show.

In annual terms, the Central Bank said the number of accounts in arrears over 90 days fell by 6%, while the number of accounts in long-term arrears decreased by 13% compared to the same time last year.

Today’s figures show that the outstanding balance on home mortgage accounts in arrears of more than 90 days was just over €5.8 billion at the end of September.

Accounts in long-term mortgage arrears – more than a year – accounted for 44% of all accounts in arrears and 71% of all accounts in arrears over 90 days at the end of the third quarter of 2023.

On buy-to-let mortgages, the Central Bank said that 12% of these loans were in arrears for more than 90 days.

Of the total number of buy-to-let accounts in arrears, 18% were overdue by between two and five years, while a further 22% were in arrears by between five and ten years and 16% were in arrears for more than ten years.

The Central Bank noted that non-banks held 75% of all buy-to-let accounts in arrears and 85% of buy-to-let accounts with accumulated arrears greater than ten years.

Today’s figures also reveal that a total of 59,284 home mortgage accounts were categorised as restructured at the end of September 2023, representing 8% of total home mortgage accounts outstanding.

According to the Central Bank, the total number of restructure arrangements fell by 2,424 accounts over the quarter and continues a long-term trend of decline.

Of the total stock of restructured accounts recorded at the end of September, 81% were not in arrears, while 85% were meeting the terms of their current restructure arrangement.

The largest two cohorts of restructured mortgages were in split mortgage and arrears capitalisation arrangements, the Central Bank added.

Meanwhile, a total stock of 5,822 buy-to-let mortgage accounts were categorised as restructured at the end of the third quarter, a fall of 530 accounts over the quarter.

Of the total stock of restructured accounts recorded at end-September, 82% were not in arrears, while 85% were meeting the terms of their current restructure arrangement.

Article Source – Short term mortgage arrears up 3% in third quarter – RTE.

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