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Irish Times

Number of mortgages in three-month arrears lowest since 2009

The proportion of mortgages at least three months in arrears in the first quarter of 2025 fell to its lowest level since the financial crisis in 2009, the Central Bank said on Friday. There were 696,538 private residential mortgage accounts for principal dwellings in the State at the end of March, with a total value of €104 billion. Of the total, 40,332 of these accounts were in some form of arrears following a 5 per cent decrease from the previous quarter. And 25,880 of those were more than 90 days in arrears at the end of the first quarter of 2025, according to the regulator's latest residential mortgage arrears and repossessions data. The 25,880 figure, or 3.7 per cent, is a decrease on the 26,899 figure for the final quarter of last year, and 27,745 at the end of September 2024. READ MORE Of the accounts in 90-day arrears, three-quarters (76 per cent) were held by non-banks. That comes after years of traditional lenders selling portfolios of soured loans to investment funds and other buyers. Accounts in long-term mortgage arrears, more than one year, had an outstanding balance of €4.3 billion. [ Cross-Border workers refused mortgages Opens in new window ] The majority of accounts in mortgage arrears are not currently subject to legal proceedings, down to 63 per cent from 68 per cent in March last year. Accounts at the formal demand issued stage stood at 13 per cent, or 5,425 accounts, without legal proceedings having commenced, but a further 12 per cent, 4,655 accounts, had legal proceedings in process. In the first three months of the year, 23 properties were taken into possession by lenders, with 17 properties being disposed of, bringing the total number of properties held by lenders to 114 at end of quarter. Seven buy-to-let properties were possessed during the period. The rate of 90-day arrears was higher in buy-to-let accounts, amounting to 10 per cent of outstanding accounts. Will rent reform make building apartments viable? Listen | 40:12 Nominally, 5,338 accounts were more than 90 days in arrears, but that figure had fallen 457 from the final quarter last year and represented a decrease of 1,702 accounts in annual terms. There were 51,695 principal dwelling house accounts categorised as restructured at the end of the quarter, which accounts for 7.4 per cent of the total number of mortgage accounts outstanding. That represents a decrease in the overall number of restructure arrangements of 1,170 accounts over the quarter which the Central Bank said 'continues a long trend of decline'. Donal Magee, a senior underwriter at Núa Money said that while the reduction in the number of mortgages is a 'positive development' but warned that there is a 'significant cohort of borrowers that are 'stuck' and unable to move to a cheaper lender or to clear their mortgage and ultimately own their own home'.