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Thursday, September 8, 2011

Latest Mortgage Arrears Data show 7.2% of Mortgage Accounts in Arrears. DRM Ireland

 Press Release 29 August 2011

The Central Bank today publishes the latest data on mortgage arrears and repossessions for the period ended June 2011. The figures show that 7.2% of private residential mortgage accounts are in arrears for more than 90 days.
At the end of June 2011 there were 777,321 private residential mortgage accounts held in the Republic of Ireland to a value of €115 billion. Of these, 55,763 accounts, or 7.2%, were in arrears for more than 90 days. This compares with 49,609 accounts (6.3% of total) that were in arrears for more than 90 days at the end of March 2011. 
The figures also show there was a total stock of 69,837 residential mortgage accounts that were categorised as restructured at the end of June 2011. This compares with a total stock of 62,936 restructured accounts at the end of March 2011. Of this total 39,395 are not in arrears and are performing as per the restructured arrangement. The balance of restructured accounts (30,442) have arrears of varying categories (arrears both less than and greater than 90 days). Therefore, 95,158[1] accounts are either in arrears greater than 90 days or have been restructured and are not in arrears as at the end of June 2011. Arrangements whereby at least the interest only portion of the mortgage is being met account for over half of all restructure types (52%)[2].
During the quarter ended June 2011, mortgage lenders applied to Court to commence proceedings to enforce the debt/security on a mortgage in 209 cases comprising arrears totalling €7.2 million built up on loans equating to €60.2 million. 201 court proceedings were concluded this quarter of which the Courts granted orders for possession/sale in 124 cases. The 77 cases where no orders for possession/sale were obtained included 36 which were settled by renegotiating the term and/or other conditions of the mortgage.
173 properties were taken into possession by lenders during the quarter, of which 54 were repossessed on foot of Court Orders and 119 following voluntary surrender or abandonment. These 173 repossessions compare with 140 repossessions that took place in the quarter ended March 2011. A total of 56 properties were disposed of during the second quarter of 2011. Mortgage lenders held 809 repossessed properties at the end of June 2011. There have been a total of 886 repossessions since this quarterly report commenced in September 2009.
Director of Consumer Protection, Bernard Sheridan, encouraged consumers struggling with mortgage repayments, or those who fear they will fall into difficulty, to make contact with their lender as early as possible so that they can benefit from the protections offered by the Central Bank’s revised Code of Conduct on Mortgage Arrears. He said: ‘The earlier you make contact with your lender the more likely you are to come to a manageable solution. The figures at the end of June 2011 show that lenders have agreed arrangements with their customers on almost 70,000 accounts.’

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