4% of mortgages 90 days in arrears

CLOSE TO 4 per cent of private residential mortgage accounts were in arrears for more than 90 days at the end of 2009, according to new figures published by the Financial Regulator.

The latest data also shows that the percentage of properties returned to banks rose by 20 per cent from the third to the fourth quarter of last year. This figure includes houses which reverted back to financial institutions after being abandoned or returned to mortgage lenders.

Mortgage accounts in arrears for more than 90 days rose by 8.9 per cent from the end of September last, while the percentage of accounts in arrears for more than 180 days increased by 8 per cent.

The data shows that at the end of December there were almost 793,000 mortgage accounts in Ireland that combined are valued at €118.3 billion.

Of these, 28,603 accounts, equivalent to 3.6 per cent of all accounts, were in arrears for more than 90 days. Approximately 19,185 of these had been in arrears for more than 180 days.

Some €5.33 billion was owed in relation to accounts that were in arrears for more than 90 days. Of these, €3.6 billion was owed for accounts in arrears for 180 days.

Overall mortgage debt for private residential mortgages declined by €306 million in the third quarter, and the average owed by each household is approximately €149,500.

According to the figures just over 5,000 formal demands outstanding have been issued by mortgage lenders, representing an increase of 12.6 per cent since the end of September 2009.

The level of arrears in these cases amounted to €69.4 million on outstanding mortgages totalling €1.1 billion.

At the end of December there were also just over 3,200 cases where court proceedings had been issued to enforce the debt/security on the mortgage.

The figures show that at the beginning of the fourth quarter of 2009, mortgage lenders held a stock of 331 properties. During the quarter, a further 27 homes were repossessed on foot of court orders.

In addition, 74 other properties were recovered following voluntary surrender or abandonment, while 35 homes were disposed of during the three-month period under review.

This left mortgage lenders with almost 400 residential properties at the end of December 2009.