Slowdown in pace of increase in arrears is welcome, says IBF

The Irish Banking Federation (IBF) and its members note from today’s Central Bank statistics on mortgage arrears that, as expected, the overall level of private residential mortgage arrears has increased – but significantly the pace of that increase is further slowing.

The increase to 11.3% in the total number of private residential mortgages in arrears comes as no surprise, reflecting as it does the difficult economic circumstances in which an increasing number of customers find themselves.  However, the slowing pace of increase in arrears is welcome, with the Central Bank noting that:

·there is an underlying decline in the number of accounts up to 90 days in arrears ·the pace of increase in arrears over 90 days has slowed; ·the number of accounts 91-180 days in arrears fell for the first time (-0.1%) ·the pace of increase in arrears over 180 days fell significantly.

It is also notable that the small decrease to 81,683 in the total number of restructured accounts is largely related to “a reclassification effect, resulting from the application of a more harmonised definition of restructures across …

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