Residential Mortgage Arrears and Repossessions Statistics: Q2 2012 

Information release 23 August 2012

Summary

The Central Bank today publishes the latest data on mortgage arrears, restructures and repossessions for the period ended June 2012[1].  The figures show that 83,251 (10.9%) of private residential mortgage accounts are in arrears over 90 days, which is up from 77,630 accounts (10.2%) as at the end of March 2012.  The Central Bank is also publishing, for the first time, data on mortgage accounts which are less than 90 days in arrears to help bring greater transparency around the trend in early arrears and also as one of the key performance indicators which the Central Bank will be using to monitor lenders’ progress.  The figures show that 45,165 mortgage accounts are in arrears of less than 90 days at the end of June.  This compares with 46,284 as at the end of March 2012.

The data also show that 84,941 mortgage accounts have been classified as restructured by the lenders.  These forbearance techniques include a switch to an interest only mortgage; a reduction in the payment amount; a temporary deferral of payment; extending the term of the mortgage; and capitalising arrears amounts and related interest. All mortgage lenders are currently piloting new forbearance and loan modification techniques to provide longer-term and more sustainable solutions for customers in financial difficulty.  The Central Bank of Ireland is continuing to monitor progress of the lenders to ensure they commence roll out of these new techniques before the end of the year and intends to publish additional data on this in early 2013.

View information release with charts

Arrears

  • At end-June 2012, there were 761,533 private residential mortgage accounts for principal dwellings held in the Republic of Ireland, to a value of €112 billion. Of this total stock of accounts, 83,251, or 10.9 per cent, were in arrears of more than 90 days. This compares with 77,630 accounts (10.2 per cent of total) that were in arrears of more than 90 days at end-March 2012.[2] 
  • The number of accounts that were in arrears of more than 180 days was 65,698 at end-June 2012, equivalent to 8.6 per cent of the total stock. At end-March, the number of accounts in arrears of more than 180 days was 59,437, or 7.8 per cent of the total stock.
  • There were 45,165 accounts in arrears of less than 90 days at end-June 2012. This figure reflects a fall of 2.4 per cent since end-March, when there were 46,284 accounts in short-term arrears.
  • While the number of accounts in arrears of more than 90 days increased by 7.2 per cent during Q2, the total value of arrears outstanding on these accounts increased by 11 per cent.

Restructuring Arrangements

  • There was a total stock of 84,941 principal dwelling mortgage accounts that were categorised as restructured at end-June 2012. This reflects an increase of 6.6 per cent from the stock of 79,712 restructured accounts at end-March. Over the same period, the outstanding value of arrears on all restructured accounts increased by 18.1 per cent.
  • Of the total stock of restructured mortgages at end-June, 40,221 were not in arrears. The remaining restructured accounts (44,720) were in arrears of varying lengths (both less than and greater than 90 days). Restructured accounts in arrears include accounts that were in arrears prior to restructuring where the arrears balance has not yet been eliminated, as well as accounts that are in arrears on the current restructuring arrangement.
  • Arrangements whereby at least the interest only portion of the mortgage is required to be met accounted for just over half of all restructure types (53 per cent).[3] A breakdown of restructured mortgages by type is presented in Figure 1.

Legal Proceedings and Repossessions

  • During the second quarter of 2012, legal proceedings were issued to enforce the debt/security on a mortgage in 345 cases. Court proceedings concluded in 193 cases during the quarter, and in 97 of these cases the Courts granted orders for possession or sale of the property.
  • A total of 146 properties were taken into possession by lenders during the quarter, of which 44 were repossessed on foot of a Court Order, while the remaining 102 were voluntarily surrendered or abandoned.
  • During the quarter 142 properties were disposed of, and as a result, lenders were in possession of 961 properties at end-June 2012.

Annex 1: Mortgage Arrears Data and Further Information

The mortgage arrears data, along with a set of explanatory notes, are available in the Mortgage Arrears section of the Statistics portal of the Central Bank of Ireland website.

The Central Bank of Ireland has produced a number of consumer guides to assist consumers who are in arrears or facing arrears, including

The above guides, that include information on the protections that are available to consumers in financial difficulty, are available to download from the consumer information section of the Central Bank website.  


[1] The Central Bank is extending data coverage to include Buy-to-Let mortgages. First results will be published later this year.

[2] The figures published here represent the total stock of mortgage accounts in arrears of more than 90 days, as reported to the Central Bank of Ireland by mortgage lenders. They include mortgages that have been restructured and are still in arrears of more than 90 days, as well as mortgages in arrears of more than 90 days that have not been restructured.

[3] Interest Only (29,956) and Reduced Payment (greater than interest only) (15,068).