Just shy of 26,000 residential mortgage accounts were behind on their payments at the end of March, the Central Bank of Ireland said.
This works out at 3.7pc of all residential mortgage accounts and is the lowest proportion of accounts in arrears over 90 days since 2009.
However, Finance Minister Paschal Donohoe admitted this week that mortgage arrears totals in this country remain high by international standards.
Three quarters of accounts in arrears are held by non-banks, mostly owned by vulture funds and serviced by the likes of Pepper Advantage and Mars Capital.
A large number of these are known as ‘mortgage prisoners’ as they are unable to move to another lender because they missed payments, and mainstream banks will not take on their mortgage.
They are paying interest rates approaching 6pc, almost double what is being paid by those whose mortgages are with banks.
The Central Bank said that over the last year the number of residential mortgage accounts in arrears over 90 days fell by 10pc. Accounts being in arrears for 90 days is the standard measure of mortgage arrears.
Statisticians in the Central Bank said the number of accounts in long-term arrears, or greater than one year, was 18,767 at the end of March. This is a fall of 1,491 accounts (7.4pc) in annual terms.
It is decrease of 475 accounts from the fourth quarter of last year.
The report shows that 51,695 home loans are currently restructured and many of these are split mortgage arrangements, where part of the loan is “warehoused” to be paid later.
Commenting on the figures senior underwriter at mortgage lender Núa Money, Donal Magee, said it was good to see mortgage arrears continuing to fall, with the number of mortgage accounts in arrears for more than 90 days at its lowest level since 2009.
“While the decline in the overall numbers in mortgage arrears is a positive development, there’s 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 as a result of another event which led to a reversal in their financial fortunes.
He said people whose mortgage payments have been restructured have mostly been able to meet the terms of their restructured arrangement and are not in arrears.
But 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.
Mr Magee said many are also unclear about if and how they could clear their mortgage.
“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.
“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 said.
The market is evolving with more options now available to these borrowers, particularly from non-bank lenders, the Núa Money executive said.
These borrowers should make it their priority to approach a mortgage broker or impartial financial adviser as these will be able to examine their cases, assess what options might be open to them and ultimately put them on a path which could see them own their own home before they retire, Mr Magee said.
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