Friday 24 November 2017

One in 10 homeowners behind on mortgage payments

Picture posed. Thinkstock
Picture posed. Thinkstock
Charlie Weston

Charlie Weston

ONE out of every 10 borrowers is in some form of arrears on their mortgage.

A total of 76,400 mortgages on homes were in arrears in the first three months of this year, new Central Bank figures show.

This is a fall of just over 1,000 accounts in arrears compared with the last three months of last year.

Of the total in arrears, almost 34,000 mortgage accounts are more than two years behind on their payments.

This is a fall of less than 500 since the end of last year.

People who have fallen more than two years behind on their payments are most at risk of losing their homes.

These accounts have average arrears of €73,710 built up on them.

Banks and other lenders told the Central Bank that the number of accounts in arrears over 90 days at the end of the first quarter was 53,100.

This represents 7pc of all residential mortgages, and was down slightly on the previous quarter.

The Central Bank said this represented the 14th consecutive decline in the number of principal homes with accounts in arrears over 90 days.

At the end of March some 120,894 mortgages on residences were classified as restructured.

Most of these were deemed to be meeting the terms of their current restructure arrangement, down slightly from previous quarter.

Lenders held 1,740 properties in possession at the end of the third quarter, a rise of 47 on the previous quarter.

They obtained 142 of these on foot of a repossession order, and some 228 were voluntarily surrendered.

The number of buy-to-let mortgages with arrears of more than 90 days fell by 2.4pc in the first three months of the year. Some 14,367 buy-to-let loans were in arrears for more than 720 days.

David Hall, of the Irish Mortgage Holders Organisation said progress in resolving arrears cases is "pathetically slow". He said the blame for this lies firmly at the door of banks and vulture funds.

Irish Independent

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