Q3 Mortgage Arrears Statistics
This post was written by Seamus Coffey
The latest update of the mortgage arrears statistics has been published by the Central Bank. See here.
For the first time since the series began the total number of PDH accounts in arrears shows a quarterly fall (142,892 to 141,520). This is a result of the slow-down in new arrears cases seen in recent quarters. The situation of those in existing arrears continues to deteriorate with another significant increase in the number now 720 days or more in arrears (28,860 to 31,834).
The outstanding balance on mortgages in arrears is €25.6 billion, of which €18.9 billion are in arrears of 90 days or more. The total amount of arrears rose from €2.02 billion to €2.17 billion.
The total amount of PDH mortgage debt continues to fall and is now at €108.5 billion, compared to €118.6 billion when the series began in September 2009. Capital repayments on existing loans are offset by new lending so the rate of capital repayment over the past four years has been substantial.
Interest-only or other reduced payment options remain the most utilised restructuring options though the number of accounts these were applied to fell from 44,805 to 37,643 over the quarter. In relation to the overall drop in the number of PDH mortgage accounts in arrears it should be noted that restructuring through arrears capitalisation increased from 13,627 to 16,146 accounts.
In the Q2 data it was reported that there was 254 permanent interest rate reductions for PDH accounts. Today’s release says that just 16 accounts now have a permanent interest rate reduction applied to them. The number counted as having a temporary interest rate reduction increased from 870 to 1,426.
The number of split mortgages rose significantly from 306 to 1,154 over the quarter. Term extensions remain the most used permanent restructure increasing from 14,630 to 15,447.
There are now 6,325 in ‘Other’ restructures (up from 2,300 in Q2). This category “mainly comprises accounts that have been offered a long-term solution, pending the completion of six months of successful payments.” Many of these are likely to be split mortgages agreed during the quarter which will move into that category on successful completion of the probation.
At the of September there were 80,555 restructured PDH accounts and 78.9 per cent were deemed to be meeting the conditions of the restructure. There were 76 forced repossession in the quarter and 133 voluntary surrenders.
Data on the Buy-to-Let sector is also included in the release.