Number of mortgages in arrears dips below 100,000

The number of principal dwelling mortgages in arrears has dipped below the 100,000 mark for the first time since the Department of Finance’s Mortgage Restructures Data series began.

At the end of September, there was an increase of over 4,100 permanent mortgage restructures over the previous month.

Almost 16,000 mortgage holders have now had the term of their home loan extended, making it the third most common method of restructuring.

Arrears capitalisation (24,482) and split mortgages (17,083) are the most frequently employed types of mortgage restructures on principal mortgages.

There has been a 5% increase in the number of split mortgages at the end of September, an increase of 885 month on month.

More than 7,450 mortgage holders with a temporary restructuring agreement have transitioned to interest-only payments.

Meanwhile, the number of buy-to-let mortgage accounts in arrears at the end of September had fallen by 391 accounts compared to the end of August, and now stands at 32,414 accounts.

In contrast to the situation seen in the primary dwelling figures, the number of buy-to-let accounts in arrears of 90 days or more increased marginally to 26,530.

The number of rent receivers appointed by the six banks involved in the report increased to nearly 5,420 — an increase of 15% compared to the previous figures.

The number of receivers appointed by the banks to collect rent on their behalf has been steadily increasing throughout the year, rising from 4,660 at the end of the second quarter to 4,690 at the end of August.

In September, engagement between consumers and lenders led to an increase of 626 accounts permanently restructured, with the total now standing at 17,461.

Merrion Stockbrokers chief economist Alan McQuaid said as the economy continues to recover, a further improvement in the mortgage arrears and restructuring situation is expected over the remainder of 2014 and into 2015.

The Department of Finance report comprises data from the six main lenders in the market — whose combined market share equals 90%.


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