Mortgage arrears and repossession rise

Figures released by the Central Bank today shows a 6per cent rise in the number if people in arrears and an acceleration in repossessions. The figures highlight that there is 8.6 billion owed by account holders who are 90 days or more in arrears and 6.2 billion owed by account holders in arrears of 180 days or over. This worsening trend has lead to 106 homes being repossessed in the last quarter and making a new total of 422 homes being repossessed since July 2009.

Official mortgage data that was supplied by the main Irish Banks to the Central Bank has revealed that:

• 44,508 mortgages (5.7% of all mortgages) valued at a total of 8.6 billion euros were more than 90 days behind payment.
• The main banks have allowed 59,229 households to restructure their debt and 35,205 of these mortgages have been classified as performing

According to the Conor Pope this new data has shown the debt owed by private households has decreased by 1.7 billion since the forth in 2009. Although the number of arrears and repossessions have risen the figures released by the Central Bank also show that the main banks are willing to restructure and try to accommodate the payment of the mortgages. The Irish Bankers' Federation have said the rise in the number of arrears is due to current economic circumstances and have stated "while the vast majority of borrwes continue to meet theor mortgage repayments, it is important that those borrowers in or facing difficulties are assisted in every reasonable way possible."