Central Bank says inadequate support for borrowers contributes to mortgage arrears

Banking watchdog says lenders contributed to the rise in short-term arrears by failing to provide adequate customer support

The Central Bank's new report says lenders 'may not be operationally ready to respond to any material increase in the volume of arrears cases'. Stock picture

Lenders have contributed to rising short-term mortgage arrears levels as they failed to provide adequate customer support services amid the cost-of-living crisis, the Central Bank has said.

The banking watchdog published the outcomes of its review into early mortgage arrears and found that while “significant” increases have not been observed by the regulator, “stress is evident” as the number of customers falling behind on their repayments continues to creep upwards.