Share of mortgages in arrears for more than 90 days hits lowest level since 2009

Data from the Central Bank of Ireland shows just 3.8% of mortgages were in arrears for more than 90 days. Picture: Jason Alden/Bloomberg

The proportion of homes in arrears for over 90 days has hit its lowest level since 2009, accounting for just under 4% of mortgage holders, new data from the Central Bank of Ireland shows.

According to the Central Bank, as of the end of last year, there were just shy of 700,000 private residential mortgages across the country valued at a combined €104bn. Of the total stock, 42,384 of these accounts were in arrears — a decline of 1,153 from the end of September.

The decline of mortgage accounts in arrears comes as the European Central Bank continued to reduce interest rates over the latter half of 2024 and into the start of this year. Last week, the ECB cut interest rates by 0.25% - the sixth such rate cut since June 2024.

The number of mortgages in “early arrears”, which is less than 90 days, stood at 15,485 which is down 17% compared to the end of 2023.

There were 26,899 home mortgage-holders who were in arrears more than 90 days - which is down 3% compared to the same period in 2023 - and accounts for just 3.8% of all mortgages and remains the lowest share of home mortgage accounts in arrears more than 90 days since the last quarter of 2009.

The outstanding balance on these mortgages was just over €5.5bn.

The number of accounts in long-term arrears, which is at least a year, stood at 19,242 which is a fall of 1,026, or 5.1%, year-on-year.

The value of the outstanding balance on mortgages in long-term arrears was €4.4bn. This category accounted for 60% of the balance on all accounts in arrears and 80% of balance on all accounts in arrears over 90 days at the end of last year.

Rachel McGovern, deputy chief executive of Brokers Ireland, said the easing of interest rates would take at least some of the pressure off arrears but those who are struggling should consult a mortgage broker for assistance. “The earlier this is done the better the outcome,” she said.

Of all those mortgages in arrears, 76% are held by non-banks entities.

Just under 53,000 home mortgages were categorised as “restructured” as of the end of 2024.

In the buy-to-let sector, there were 54,238 residential mortgages with 7,160 in arrears - down 24% in annual terms. Of those in arrears, just under 4,800 were more than a year overdue. The outstanding balance on these accounts was €1.6bn.

In terms of legal proceedings and repossessions, just 4,615, or 11%, of mortgages in arrears are currently going through legal process of which nearly a quarter have been in the legal system for over five years.

This includes cases at Civil Bill lodgement stage and instances where the case is still active in the courts system.

Between October and December, there were six repossessions recorded by lenders. Throughout the course of 2024, lenders took possession of 49 homes on the foot of a court order while 45 were voluntarily surrendered or abandoned by the occupant.

During the quarter, 54 properties were disposed of by lenders. As a result, lenders were in possession of 110 properties as of the year. In the buy-to-let sector, one property was taken into possession by a lender during the last three months of 2024 while three properties were disposed of.