New Central Bank figures show the downward trend in the level of mortgage arrears seen over the past number of years continued during the second quarter of 2022.
The Central Bank said the number of home mortgage accounts in arrears fell by 2,071 in the second quarter of the year after a decline of 292 in the first quarter.
Overall, the total number of home loan accounts in arrears is down 3,073 accounts or 6% from the same time last year.
Today’s Central Bank figures show that 4.4% of home mortgages – 31,645 home loans – were in arrears for over 90 days. This marked the lowest number of accounts in arrears over 90 days since March 2010.
Of the mortgage accounts in arrears, 13% are currently part of a legal process, with just over one third in the legal system for over five years.
The Central Bank noted that non-bank entities continue to hold an increasing proportion of home mortgages, specifically in relation to mortgage accounts in arrears.
At the end of June, non-banks held 15.5% of all home mortgages outstanding and 74.5% of all home mortgage accounts in arrears for over a year, it added.
A total of 63,422 home mortgage accounts were categorised as restructured at the end of June this year, representing 9% of total home mortgage accounts outstanding.
The Central Bank said the total number of restructuring deals fell by 1,139 accounts over the quarter and also continues a long-term trend of decline.
2,354 new restructure deals were agreed during the second quarter of 2022, down from 3,092 in the first three months of the year.
Arrears capitalisation and term extension accounted for the largest share of new restructure arrangements, at 1,027 and 588 accounts, respectively, the Central Bank noted.
For the outstanding stock of restructures, split mortgages accounted for the largest share, representing 31% of all restructured mortgage accounts at the end of the second quarter.
Meanwhile, today’s Central Bank figures also show that 11,370 buy to let mortgage accounts were in arrears at the end of June, a decrease of 640 accounts or 5.3% over the quarter.
The Central Bank noted that of the total buy to let mortgages, 9,566 accounts or 12% were in arrears of more than 90 days.
Of the total number of buy to let mortgage accounts in arrears, 21% were overdue by between two and five years, a further 26% were in arrears by between five and ten years and 18% were in arrears over 10 years.
Non-bank entities accounted for 32% of the total stock of buy to let mortgage accounts outstanding.
The Central Bank noted that significantly, non-banks held 72% of all buy to let accounts in arrears and 85% of accounts with arrears for more than ten years.
A total of 7,558 buy to let loans were categorised as restructured at the end of June – a fall of 300 accounts over the quarter.
Of the total stock of restructured accounts recorded for the period under review, 84% were not in arrears, while 88% were meeting the terms of their current restructure arrangement, the Central Bank stated.