Mortgage arrears rise by 3% following series of interest rate hikes

Despite a year of rate hikes, the number of homeowners in long-term arrears fell by more than 4,000 in the quarter

Among non-banks, a greater proportion of private dwelling accounts held are in longer-term arrears when compared to banks, with such entities holding 76 per cent of all accounts in arrears over one year.

The number of homeowners who have slipped into arrears rose by 3% in the first three months of 2022, rising by 1,430 accounts, new figures from the Central Bank of Ireland show.

However, the Central Bank pointed out that about 1,300 of these were down to a “reclassification effect” arising from the withdrawal of KBC and Ulster Bank from the Irish market and the impact this has had on the transfer of loans from one bank to another.