Accounts in Long-Term Mortgage Arrears Fall

23rd June 2020

The Central Bank has today released its report on 'Residential Mortgage Arrears & Repossession Statistics: Q1 2020'. At the end of March 2020, the total number of accounts in mortgage arrears increased by 2,841 or 4.7%. However, accounts in long-term arrears (over 720 days/2+ years) decreased by 2.5% over the quarter.

Accounts entering early arrears were the primary driver of the 4.7% increase. These are accounts under 90 days in arrears. There are indications that some of these accounts have since resolved the arrears. This was due to COVID-19 related mortgage payment breaks being introduced by lenders towards the end of the quarter.

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Out of the total 739,592 mortgage accounts, 63,437 are in mortgage arrears. This equates to 1 in 12 accounts being in mortgage arrears. Of the total accounts in arrears, 26,421 or 42% were in long term arrears.

Accounts in arrears over 90 days (41,076) dropped to their lowest since 2010. This category now accounts for 5.6% of all mortgage accounts.

The report states Non-Banking-Entities (NBEs, also referred to as Credit Servicing Firms) own 13% of all mortgage accounts and 55% of accounts that are in arrears over 720 days. Have you got a question about NBE’s? Check if we’ve covered it in our blog here.

Over 4,088 restructures were agreed in the quarter. The most common restructure arrangement in was Arrears Capitalisation, accounting for 31% of restructures. The number of restructured Primary Dwelling Houses (PDH) is now 81,255. NBE’s account for 1,055 or 25.8% of new restructures in Q1 2020.

Repossessions decreased by 37.2% versus the previous quarter, decreasing from 102 to 64. Of which, 25 were repossessed on foot of a court order, and 39 were voluntarily surrendered. Some of these voluntary surrenders can be attributed to the 19 households approved under the Mortgage to Rent scheme. At the end of March 2020, lenders were in possession of 917 properties.

Are you one of the 26,421 account holders in long term arrears and don’t know what to do? Has your mortgage been sold to a ‘fund’? Are you worried engaging will mean you’ll lose your home?

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.