Mortgage Arrears – Legacy Issues Still Dominate – Brokers Ireland

Press Release

Friday 14^th March 2025

Commenting on mortgage arrears and repossessions for Q4 2024 published today by the Central Bank, Brokers Ireland said while overall numbers may have declined, the figures point to many unresolved issues.

Rachel McGovern, Deputy Chief Executive of Brokers Ireland, which represents 1,250 brokers, noted that of the 52,865 principal dwelling houses mortgages that have been classed as restructured 16% are not meeting the terms of the restructure.

“And the two largest cohorts are restructured by way of a split mortgage or arrears capitalisation.  In the latter case arrears are added to the capital outstanding and spread out over the remaining term of the mortgage, increasing the monthly repayment amount for the borrower.”

She said over 10,000 mortgages have been dealt with in this way.

“It’s not a sustainable solution, as the Central Bank itself acknowledges in today’s publication,” she said.

She also noted that 76%of mortgages in arrears for over 90 days are held by non-bank entities, and 85% of those in arrears for at least a year.

“Unfortunately, interest rates available in credit servicing firms are generally higher than those available through the pillar banks,” she said.

Of the PDH accounts in arrears, 4,615 accounts are currently part of a legal process, 24 per cent of which have been in the legal system for over five years.

“The question that arises is when are these mortgage holders going to be helped towards appropriate solutions that enable them cope financially.”

She said more urgent attention needs to be paid to the issue and she pointed out that the Mortgage Arrears Review Group in a report last September acknowledged that the scale of longer-term mortgage arrears in Ireland continues to be of an outsized nature when Ireland is compared to international counterparts, and has a significant impact on thousands of impacted Irish households.

Ms McGovern said mortgage holders who are struggling should to consult a Mortgage Broker for assistance.  “And as always the early this is done the better the outcome,” she said.

Ends

Further information:

Rachel McGovern,    Deputy Chief Executive, Brokers Ireland

Tel. 086-8259938

Mairéad Foley, Foley Ryan Communications

Tel. 086-2556764