Long-Term Mortgage Arrears Accounts Drop below 25,000

speech bubble saying long-term mortgage arrears accounts drop below 25,000

 

The Central Bank has today released its report on ‘Residential Mortgage Arrears & Repossession Statistics: Q4 2020’. At the end of December 2020, the total number of accounts in mortgage arrears have reduced by <1% or 462 accounts.

General Statistics

Firstly, accounts in arrears for over 720 days (2 years) had a 2% decrease (790 accounts) over the quarter contributing to the overall decrease in arrears. Secondly, this category (ranging from 2 years to over 10 years in arrears) is at the lowest point since the beginning of 2013. It now stands at 24,981 accounts.

This category (2 years and over) is made up of 16% (or 8,926 accounts) in arrears between 2 and 5 years. 20% (or 10,789 accounts) were in arrears between 5 and 10 years. 10% (or 5,266) were in arrears over 10 years.

Out of the total 731,988 mortgage accounts, 54,986 are in mortgage arrears. This equates to 1 in 14 accounts being in mortgage arrears.

In addition, accounts in arrears over 90 days (38,785) continues to drop to its lowest level since 2010. This category accounts for 5.3% of all mortgage accounts.

Restructures

Over 4,203 restructures were agreed in the quarter. The most common restructure arrangement in was Split Mortgages, accounting for 29.7% of restructures. The number of restructured Primary Dwelling Houses (PDH) is now 72,866. Of these restructured accounts, 86% of these are meeting the terms of their new arrangement.

Borrower Engagement

Borrower engagement among the 2 years or more category show that the longer the borrower is in arrears, the less likely it is that they’re engaging and working towards a restructure. The numbers show that almost half the accounts in arrears (11,466 or 46%) are not in a restructure or classified as “co-operating”. Over 50% of these accounts have had legal proceedings begin.

Are you one of the 24,981 account holders in long term arrears and don’t know what to do? Are you worried engaging will mean you’ll lose your home? For reasons out of your control, have you fallen further behind on your payments?

Get Help

Don’t sit in silence with these questions on your mind. The Abhaile scheme is here to support and help you. The service is free and has already helped thousands of others just like you keep their home. Talk with an adviser today and begin your mortgage arrears resolution journey by calling 0818 07 2000 or message us on WhatsApp 086 035 3141.

Remember, it’s never too late to get in touch.

Source: Read the full release from the Central Bank of Ireland.