Buy to Let

Mortgage arrears cases continue to fall

The number of mortgage accounts in arrears continued to fall in the second quarter of the year, according to the Central Bank.

There were 73,706 owner-occupier loans in arrears at the end of June, which is down 3.6% on the figure recorded in March.

That marks four years of consistent declines, though arrears cases still represent 10% of all owner-occupier mortgages.

More than 32,000 (43.6%) of such cases were in arrears for more than 720 days, with that figure falling by 2.4% in the quarter.

However the outstanding balance on these long-term arrears stood at €7.23m, which is more than half the total amount owed by all arrears cases.

Those long-term cases also represented the vast bulk – almost 90% – of the arrears currently owed to lenders.

Arrears also declined amongst buy-to-let arrears cases, which fell 2.8% in the quarter to 23,862.

Almost 60% of buy-to-let cases were in arrears for 720 days or more, with their outstanding balance representing more than 65% of what is owed by landlords in arrears.

The Central Bank says that rent receivers were appointed to 430 buy-to-let accounts during the quarter – which is down from 550 in the previous three month period.

The figures also show that when owner-occupier and buy-to-let cases are combined, there are 19,762 mortgage accounts being held by unregulated loan owners.

These are more likely to be in long-term arrears as well, with 41% of the accounts they hold in arrears for 720 days or more.

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