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10pc fall behind with mortgage

ONE in every 10 mortgage borrowers has now fallen behind with their repayments, new figures show.

Credit ratings agency Moody's said that the level of arrears has soared since its July reports.

Arrears of 90 days jumped to 10.14pc in the three months to end of October, the agency said.

The new report for October was the first time that arrears have risen over the 10pc level.

More than 773,000 homeowners have mortgages which total about €114bn.

But Moody's said that close to 78,500 of them are having difficulty meeting their repayments.

Last month the Central Bank said that 8.1pc of mortgages were 90 days or more in arrears by the end of September, compared with 7.2pc at the end of June. The agency said that falling house prices would increase the size of losses the banks would have to absorb on defaulted mortgages.