Accounts in Long-Term Mortgage Arrears remain stable at 5.6%

28th September 2020

The Central Bank has today released its report on 'Residential Mortgage Arrears & Repossession Statistics: Q2 2020'. At the end of June 2020, the total number of accounts in mortgage arrears have reduced by 10% or 6,645 accounts.

Accounts in arrears up to 90 days were the primary reason for the 10% decrease (6,627 accounts). Many households who experienced financial impacts of COVID-19 have not gone into arrears because of the payment breaks introduced by lenders in March. These breaks are now coming to an end so may have a bigger effect on households who have not recovered from the shock experienced at the beginning of the pandemic.

coming off payment break guide

Out of the total 736,307 mortgage accounts, 56,792 are in mortgage arrears. This equates to 1 in 14 accounts being in mortgage arrears. Of the total accounts in arrears, 26,228 or 46% were in long-term arrears of over two years.

Accounts in arrears over 90 days (41,061) dropped to their lowest level since 2010. This category accounts for 5.6% of all mortgage accounts.

Over 3,041 restructures were agreed in the quarter. The most common restructure arrangement in was Arrears Capitalisation, accounting for 29.6% of restructures. The number of restructured Primary Dwelling Houses (PDH) is now 77,789.

New statistics included in this quarter’s report include the numbers on borrower engagement and the legal status of the accounts in arrears. It shows that most accounts in arrears (34,502) are not subject to legal proceedings but that legal proceedings for 6,511 accounts (11% of those in arrears) have been ongoing for over two years and 4.5% in the legal system for over 5 years.

Are you one of the 26,228 account holders in long term arrears and don’t know what to do? Are you worried engaging will mean you’ll lose your home? Have you fallen further behind over the past few months for reasons out of your control?

Don’t sit in silence with these questions on your mind. The Abhaile scheme is here to support and help you. The service is free and has already helped thousands of others just like you keep their home. Talk with an adviser today and begin your mortgage arrears resolution journey by calling 0761 07 2000 or, message through our live chat.