| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

Follow Finfacts on Twitter

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : Property Last Updated: Mar 4, 2014 - 2:01 PM


Irish mortgages in arrears 360 days+ at 60,422 - 7.9% of total accounts
By Finfacts Team
Mar 4, 2014 - 1:53 PM

Email this article
 Printer friendly page

The Central Bank said today the number of Irish mortgage accounts in arrears for principal dwelling houses (PDH) fell by 3.3% to 136,564  in the fourth quarter of 2013 from 141,269 at the end of the third quarter. This represents 17.9% of the total mortgage market. However, accounts 360 days+  in arrears grew to  60,422.

The value of PDH mortgages in arrears was €24.4bn.

The bank said that the number of mortgages in arrears of less than 90 days fell by 5.7% during the fourth quarter compared to a fall of 5.5% in the third quarter. 

However, longer term arrears continued to increase with the number of mortgages in arrears for over 360 days reaching 60,422 - 7.9% of the total stock of mortgage accounts. Within this category, accounts in arrears of over 720 days, rose by 1,755 to 33,589 and represent 24.6% of all accounts in arrears.

At end-December 2013, there were 145,530 residential mortgage accounts for buy-to-let properties held in the Republic of Ireland, to a value of €29.7bn. Some 39,250 (27 per cent) of these accounts were in arrears, compared to 40,396 (27.4 per cent) at the end of the third quarter. Of this total stock of accounts, 30,706, or 21.1 per cent, were in arrears of more than 90 days, reflecting a decrease of 1.5 per cent over the quarter. The outstanding balance on BTL mortgage accounts in arrears of more than 90 days was €8.7 billion at end-December, equivalent to 29.2 per cent of the total outstanding balance on all BTL mortgage accounts.

Central Bank  data: Residential Mortgage Arrears and Repossessions Statistics: Q4 2013

Dermot O'Leary, chief economist of Goodbody commented  -- "Arrears trending downwards…Mortgages in arrears over 90 days (in both value and value terms) fell for the first time since the crisis began in Q4 2013, indicating that stress in the system is easing, albeit from very high levels. In Q4, the value of arrears over 90 days fell to 19.6% of total mortgages, down from 20.0% of total in Q3 2013 (from 14.2% to 14.0% in volume). Adding in restructured mortgages, the total rises to 27.1% of total, representing a fall from 27.3% in Q3. 

…with both BTL and owner occupier arrears falling in Q4: While arrears on the Buy-to-Let book remain substantially larger, there were similarly positive trends in both books. There were 40.4% of BTL mortgages (by value) in arrears over 90 days or restructured in Q4 2013, down modestly from Q3 2013 (40.4%). This is first fall since the series began in June 2012. There were 23.4% of the owner-occupier book in arrears over 90 days or restructured, down from 23.6% in Q3.
 
 Large legacy issues remain to be dealt with: There are still large legacy issues that the banks have to deal with in the coming quarters. Specifically, the only category of arrears that experienced an increase in the quarter was “over 720 days”. In Q4 2013, there were 46,000 accounts in arrears of over 720 days with total arrears outstanding of €2.3bn. This highlights the need for realistic sustainable solutions to be put in place for those in late stage arrears.
 
 Questions remain about appropriateness of restructuring solutions: Recent quarters have seen a shift in the type of restructuring solutions being put in place by the banks. At the end of December, arrears capitalisation was the most popular solution (22% of total), followed by interest-only (19%), reduced payment (18%) and term extension (18%). The biggest change over the past 12 months has been the move away from interest-only to arrears capitalisation and term extension."

Check out our subscription service, Finfacts Premium , at a low annual charge of €25

Related Articles
Related Articles


© Copyright 2011 by Finfacts.com

Top of Page

Property
Latest Headlines
Irish residential rents rise 9% as students face tight market conditions
Irish construction activity growth eased in July
Irish residential property prices fell in Dublin in June
Irish mortgage approvals growth fell sharply in April 2015
Irish land prices among highest in world; Noonan tax cut boosts Dublin prices
AIB cuts Irish variable mortgage rates
Dublin residential property prices rose by 1.1% in March
Global property bubble: Dublin tops 2014 global returns at 44.7%
New Irish housing units in 2015 forecast at only 10,000
Ireland: Dublin house prices up 21% in year to February 2015 after price decline in month
Prime office rents in Dublin to rise by up to 31% in 2015 after 29% surge in 2014
Irish mortgages paid in 2014 at 1976 level; Half of house sales paid in cash
Irish residential property prices fell 1.4% nationwide in January
Irish House Rents: Supply tightens in Dublin's commuter counties in Q 42014
Irish commercial property returns in 2014 among highest in world
Irish Housing: "Unique" demographics to boost demand; Shortages to rise
Irish mortgage approvals in 2014 at 36-year low; Exceed paid loans
Irish commercial property investment in 2014 was 25% above bubble peak in 2006
Irish construction continues to rise from very low base
Irish house asking prices fell back slightly in fourth quarter of 2014
Price/Earnings multiple for Dublin houses is double 1993 level
Residential property rents up almost 10% in Dublin in past year
Irish Government and vested interests lobby for easing of Central Bank's mortgage rules
Ireland tops global property price rankings six years after bust
Number of Irish mortgages paid in 2014 at 1974/75 level - a 40 year-low
Irish construction PMI survey confidence measure highest since 2000
Irish mortgage arrears decline; 38,463 BTL accounts in arrears
Irish Housing: Renting provides less security than ownership, unpredictable rents
Ireland: NAMA to redeem €1bn of senior bonds; Fund Boland’s Mill site development
Ireland: 35,000 social housing units by 2020 achievable; Rental market possibly not
Dublin house prices up 24.1% in year to October 2014
Irish home ownership to fall due to affordability
'Tara Collection' of office buildings on sale in Dublin for €263.8m
Irish Housing Rents 2014: Dublin just 10% short of 2007 bubble peak
Irish Economy: Residential mortgage approvals in 2014 as low as in 1977
Irish Construction: Fastest rise in new business for decade - not level of activity
Biggest US individual landowner responds to tax breaks in Ireland and UK
Irish commercial property annual return to September 2014 at 36.6% - income at global high
NAMA expects surplus of less than €500m - it's not a profit; 88.5% sales to US investors
NAMA selling 588 Dublin apartments - name withheld in announcement