Number of mortgage accounts in arrears declines

The number of mortgage accounts in arrears continued to fall in the second quarter of 2015, marking the eight consecutive quarter of decline, according to new figures from the Central Bank.

A total of 98,137 (13 per cent) of mortgage accounts were in arrears at June-end, a decline of 6.3 per cent (6,556 accounts) compared to the first quarter.

However, the data shows that mortgage accounts in arrears of two years or more are still rising, albeit at a slower pace than seen previously.

There was an increase of 108 accounts in arrears for over 720 days during the second quarter, as against an increase of 1,729 accounts for the same period a year earlier. The number of accounts in arrears for more than 720 days stood at 38,041 at the end of June.

The figures show that accounts in early arrears declined significantly during the second quarter, falling 8.1 per cent quarter-on-quarter to 27,838 at June-end.

The number of accounts in arrears over 90 days at end-June was 70,299 (9.3 per cent of total), reflecting a quarter-on-quarter decline of 5.5 per cent. The outstanding balance on all lenders’ personal dwelling home mortgage accounts in arrears of more than 90 days was €13.8 billion at the end of June.

Buy-to-let mortgage accounts in arrears for 90 days or more fell by 5.2 per cent during the second quarter. The outstanding balance on all lenders’ buy-to-let mortgage accounts in arrears of more than 90 days was €7.2 billion at end-June.

At the end of June there were 15,276 buy-to-let accounts in arrears for two years or more, with an outstanding balance of €4.6 billion equivalent to 17.2 per cent of the total outstanding balance on all BTL mortgage accounts.

The Central Bank said some 118,593 mortgage accounts were classified as having been restructured at the end of June, up 1.9 per cent compared to the end of March.

A total of 422 properties were taken into possession by lenders during the quarter, of which 201 were repossessed on foot of a Court Order, while the remaining 221 were voluntarily surrendered or abandoned.