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Mortgage arrears problem continues to grow

Over 135,628 mortgage accounts are in arrears (of either more or less than 90 days).

Image: Niall Carson/PA Archive/Press Association Images

FIGURES RELEASED BY the Central Bank yesterday show that 86,146 private residential mortgage accounts are in arrears of more than 90 days. Over 67,000 are in arrears of more than 180 days.

New data collected this quarter indicates that 19,541 accounts, or 2.6 per cent of the total stock, were in arrears of more than 720 days.

The data, taken at the end of September, reveals that the problem of mortgage arrears continues to grow across the country with the rate now standing at 11.3 per cent. However, the pace of increase has slowed somewhat.

Although there were more early-arrears cases reported in September than at the end of June 2012, the regulator said the growth was “entirely attributable” to technical timing issues. Altogether, 49,428 mortgage holders are in arrears of less than three months.

Data: Central Bank

At the end of September, 81,683 mortgages were classified as restructured by the mortgage lenders. Theses include interest-only and reduced payment arrangements.

Data: Central Bank

Currently, there are 761,594 private residential mortgage accounts for principal dwellings held in Ireland, at a value of €111.2 billion.

Legal proceedings

Legal proceedings were started in 466 cases between 1 July and 30 September this year. Court hearings concluded in 119 cases, with orders for possession or sale of the property granted in 79.

There were 944 properties in the banks’ possession at the beginning of June. A total of 154 properties were taken into possession by lenders during the three-month period, of which 47 were repossessed on foot of a court order, while the remaining 107 were voluntarily surrendered or abandoned.

Buy-to-let homes

Data: Central Bank

For the first time, the Central Bank published data on residential mortgage holders for buy-to-let (BTL) properties. The figures indicate that 26,770 out of 149,592 accounts were in arrears of more than 90 days, an increase of almost 2,000 accounts.

The number of accounts that were in arrears of more than 180 days was 21,828 at end-September 2012, reflecting a quarter-on-quarter increase of 10 per cent. Meanwhile, 6,628 accounts, or 4.4 per cent of the total stock, were in arrears of more than 720 days at end-September.

There were 566 BTL cases in which a rent receiver had been appointed as at end-September. In 103 of these cases, the rent receiver was appointed during the third quarter of 2012.

There were 378 BTL properties in the banks’ possession at the beginning of June. A total of 74 properties were taken into possession by lenders during the quarter, of which 28 were repossessed on foot of a court order, while the remaining 46 were voluntarily surrendered or abandoned.

READ: Shatter said Troika deal will not increase repossessions

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