Previous mortgage arrears predictor of Covid-19 payment breaks

The 67,000 mortgage breaks accounted for one-in-nine of all residential home loans or around €10bn in value

Households needing mortgage payment breaks during the Covid-19 crisis are more than likely to have been in arrears in the wake of the last financial crisis, according to new Central Bank research.

Researchers Edward Gaffney and Darren Greaney found that households who are currently struggling to meet payments or have a history of arrears accounted for a significant share of the 67,000 Covid-19 mortgage payment breaks advanced by five lenders by the end of May.