New figures from the Central Bank show that the number of mortgage accounts in arrears for more than 90 days during the first quarter of 2025 was at their lowest level since 2009.
The Central Bank said the number of principal dwelling house (PDH) accounts in arrears over 90 days stood 25,880 at the end of March, or 3.7% of all home mortgage accounts.
It noted that 75% of accounts in arrears over 90 days are held by non-banks.
Today’s figures show that in annual terms, the number of home accounts in arrears over 90 days fell by 10%.
The number of accounts in long-term arrears (greater than one year) was 18,767, or 2.7% of all home mortgage accounts. This marked a fall of 7.4% in annual terms and a decrease of 475 accounts from the fourth quarter of 2024.
Meanwhile, the total number of home mortgage accounts in arrears in the first quarter fell by 5%, continuing the trend of decline since the fourth quarter of 2023.
The number of accounts in early arrears (less than 90 days) decreased by 7% from the fourth quarter of 2024 and by 23% from the first quarter of 2024.
The Central Bank said a total stock of 51,695 home mortgage accounts were categorised as restructured at the end of March, 7.4% of total home mortgage accounts outstanding.
It noted that the total number of restructure arrangements fell by 1,170 accounts over the quarter and continues a long trend of decline.
Of the total stock of restructured accounts recorded at the end of March, 81% were not in arrears, while 85% were meeting the terms of their current restructure arrangement.
The largest two cohorts of restructured PDH mortgages were in split mortgage and arrears capitalisation arrangements – unchanged from the previous quarter.
Meanwhile, of the total number of PDH accounts that were in arrears at the end of March, 9,720 (24%) were classified as restructured.
Today’s figures also show there were 6,648 buy-to-let (BTL) accounts in arrears at the end of March, a decrease of 8% over the quarter and a decrease of 27% in annual terms.
Of the total buy-to-let stock, 5,338 accounts (10% of BTL accounts outstanding) were more than 90 days in arrears, a fall of 457 from the fourth quarter of 2024 and a decrease of 1,702 accounts in annual terms.
Buy-to-let accounts in arrears of over one year numbered 4,539 or 9% of all BTL accounts.
The Central Bank noted that of the total number of BTL accounts in arrears, 22% were overdue by between two and five years, a further 19% were in arrears by between five and ten years and 16% were in arrears over 10 years.
It added that non-bank entities held 79% of all BTL accounts in arrears, 86% of BTL accounts in arrears over one year and 82% of BTL accounts in arrears greater than ten years.
Commenting on today’s figures, Donal Magee, Senior Underwriter at Núa Money, said that while the decline in the overall numbers in mortgage arrears is a positive development, there is still 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.
He said these borrowers would typically have restructured their mortgages after running into problems repaying their loan following the financial crash of 2008 or indeed as a result of another event which led to a reversal in their financial fortunes.
He noted that while most of these borrowers have been able to meet the terms of their restructured arrangement and are not in arrears, many have run into difficulties switching their mortgage as the main banks generally won’t consider switching applications from those with a split mortgage arrangement.
Many are also unclear about if and how they could clear their mortgage, he added.
“These homeowners, many now in their 50s or early 60s, are not in acute distress. But they remain in an uncertain position, with no clear timeline for when – or if – they will own their homes outright,” he said.
“With retirement approaching, it’s increasingly important that these borrowers have access to options that allow them to bring their mortgage to a conclusion in a sustainable and realistic way,” he stated.
