Mortgage arrears falling but remain high by international standards
The number of residential mortgage accounts in arrears for at least one year was 19,242 at end December 2024, the Department of Finance said.
This is an annual decline of 1,026 mortgage accounts in long-term arrears, representing a 5pc reduction.
Despite mortgage arrears numbers falling back, the Government admitted they remain high by international standards.
The total number of home mortgage accounts in arrears at end of last year fell by 11pc over the year.
At the end of 2024, the overall number of principal dwelling-house mortgage accounts in arrears has reduced to 42,384. This is below the previously lowest observed level of 46,322 in September 2022, the department said.
The report on arrears from the department is a new annual initiative arising from the recommendations of the Mortgage Arears Review Group, which reported last September.
Finance Minister Paschal Donohoe said mortgage arrears resolution options continue to provide distressed mortgage borrowers with the possibility of a solution to their debt problems.
Mr Donohoe said: 'I am very encouraged by the trends which have been highlighted by the mortgage arrears review of 2024.
'Mortgage arrears continue to decline at a steady pace and have withstood the pressures from the Covid-19 pandemic and the movement in ECB interest rates in recent years.
'However, these are uncertain and turbulent times and there can be no room for complacency on the part of Government or the Financial Services Industry.'
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The Mortgage Arrears Review for 2024 reports on the Central Bank of Ireland's mortgage arrears statistics for Q4 of 2024 as well as activity under the Abhaile Service, personal insolvency arrangements and the Mortgage-to-Rent process.
The number of accounts in early arrears – defined as less than 90 days – was 15,485 at the end of last December.
Early-arrears cases represent 2.2pc of all outstanding mortgage accounts on principal dwelling houses.
Mr Donohoe said: 'Although mortgage arrears are declining, they remain high by international standards and the Government is committed to fostering further momentum in reducing arrears.'
He said the Programme for Government pledges to continue support for Abhaile, the national mortgage arrears resolution service and ensure the enforcement of the Code of Conduct on Mortgage Arrears, recently updated as part of the Central Bank of Ireland's new consumer protection code review.
The minister said the Government and its agencies have been active in offering targeted services to distressed mortgage borrowers to assist them in finding a sustainable solution to their situation.
The Abhaile Service can provide free access for borrowers to financial, legal, or insolvency advice, depending on their circumstances.
The Central Bank of Ireland recently revised its Code of Conduct on Mortgage Arrears as part of its review of the Consumer Protection Code. The Mortgage-to-Rent Scheme can provide a solution for distressed borrowers who have been unable to find a sustainable solution.
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