Almost 4,000 new restructures agreed in Q3 2020

18th December 2020

The Central Bank has today released its report on 'Residential Mortgage Arrears & Repossession Statistics: Q3 2020'. At the end of September 2020, the total number of accounts in mortgage arrears have reduced by 2.4% or 1,344 accounts.

Accounts in arrears from 90 - 180 days (3-6 months) were the primary reason for the 2% decrease (669 accounts). Many households who experienced financial impacts of COVID-19 had gone into early arrears but were able to avail of a mortgage payment break. 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 733,301 mortgage accounts, 55,448 are in mortgage arrears. This equates to 1 in 13 accounts being in mortgage arrears. Of the total accounts in arrears, 25,771 or 46% were in long-term arrears of over two years.

Accounts in arrears over 90 days (39,397) continues to drop to its lowest level since 2010. This category accounts for 5.4% of all mortgage accounts.

Over 3,954 restructures were agreed in the quarter. The most common restructure arrangement in was Split Mortgages, accounting for 29.6% of restructures. The number of restructured Primary Dwelling Houses (PDH) is now 76,305.Of these restructured accounts, 87% of these are meeting the terms of their new arrangement.<

Borrower engagement among the 2 years or more category show that the longer the borrower is in arrears, the less likely it is that the borrower is engaging and working towards a restructure. The numbers show that almost half the accounts in arrears (12,111 or 47%) are not in a restructure or classified as “co-operating” and have had legal proceedings begin in over 50% of accounts.

Are you one of the 25,771 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.

Remember, it’s never too late to get in touch.

Source: Read the full release from the Central Bank of Ireland