For First Time Since 2013, Long-Term Mortgage Arrears Accounts Drop below 25,000

18th March 2021

The Central Bank has today released its report on 'Residential Mortgage Arrears & Repossession Statistics: Q4 2020'. At the end of December 2020, the total number of accounts in mortgage arrears have reduced by <1% or 462 accounts.

Accounts in arrears for over 720 days (2 years) had a 2% decrease (790 accounts) over the quarter contributing to the overall decrease in arrears. This category ranges from 2 years to over 10 years in arrears, is at the lowest point since the beginning of 2013, it now stands at 24,981 accounts.

This category (2 years and over) is made up of 16% (or 8,926 accounts) in arrears between 2 and 5 years, 20% (or 10,789 accounts) were in arrears by between 5 and 10 years, while 10% (or 5,266) were in arrears over 10 years.

Out of the total 731,988 mortgage accounts, 54,986 are in mortgage arrears. This equates to 1 in 14 accounts being in mortgage arrears.

Accounts in arrears over 90 days (38,785) continue to decline steadily. This is the second quarter where this number has fallen below the record in 2010. These accounts make up 5.3% of all mortgage accounts.

Over 4,203 restructures were agreed in the quarter. The most common restructure arrangement in was Split Mortgages, accounting for 29.7% of restructures. The number of restructured Primary Dwelling Houses (PDH) is now 72,866. Of these restructured accounts, 86% 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 (11,466 or 46%) 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 24,981 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 online chat.

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

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