Irish Mortgage Arrears Rate falls to lowest level in almost 12 years

On Wednesday, 30th of March, the Central Bank released its mortgage arrears statistics for Q4 2021. We now have a complete picture of 2021, and it is hopeful. The Central Bank figures show that the rate of owner-occupier mortgages in arrears, more than 90 days, is the lowest in over 12 years. 

“This continues the incremental downward trend observed over the last number of years and is the lowest number of accounts in arrears over 90 days since March 2010,” the Bank said. 

The main findings of their report showed: 

• The number of home loans in default amounted to 32,558 at the end of December, bringing the ratio down from 4.7% at the end of September (the ratio peaked at 12.9% in 2013). 
• The outstanding balance on private dwelling home mortgage accounts in arrears of more than 90 days was €6.6 billion at end-December. 
• Accounts at least a year behind in payments accounted for 55 per cent of all cases in arrears. 
• A total stock of 66,590 accounts were categorised as restructured at end-December 2021, representing 9 per cent of all owner-occupier loans. 
• Some 12% of buy-to-let loans were in arrears for more than 90 days at the end of December, representing a 6 per cent decrease over the quarter. 

Non-bank entities now hold 67% of all accounts over 1 year; however, it’s important to note this does not automatically mean bad news. Non-bank entities continue to work with the services of Abhaile to reach sustainable and long-term arrangements that continue to keep borrowers in their homes. Read our blog on what you can do if your home loan has been sold.  

To read the full statistical release, please visit the Central Bank website. 

If you are in mortgage arrears or are in need of further information about Abhaile, call the MABS National Helpline on 0818 07 2000, Monday – Friday 9am – 8pm, or visit your local MABS office for more information. 

Abhaile is jointly coordinated and funded by the Department of Justice and the Department of Social Protection. The Money Advice and Budgeting Service (MABS), the Insolvency Service of Ireland (ISI), the Legal Aid Board (LAB), and the Citizens Information Board (CIB) are working together to provide the Abhaile service.