Thursday 25 May 2017

Fitch: Number of Irish mortgage in arrears showing sustained decline

Independent.ie reporters

NEW figures released by ratings agency Fitch showed that for the first time since 2005, Irish mortgages in arrears for more than three months showed a "sustained" decline.

The figure fell to 17.7pc in the second quarter, compared with a peak of 19.3pc in the third quarter of last year.

It was down from 18pc in the previous quarter, Fitch said.

"This recent change in trend is a result of ongoing servicing activities aimed at resolving long-term arrears cases and an improvement in the domestic macroeconomic environment," the report added.

"Nevertheless, market data provided by the Central Bank of Ireland shows that the portion of loans in arrears by more than 720 days is still rising, implying that more loan renegotiations are yet to take place.

"In January 2015, the Central Bank of Ireland announced limits on loan-to-value and loan-to-income ratios on new mortgage loans. This is likely to lower credit growth but should have a limited impact on home price recovery."

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