The Irish Department of Finance (DoF) released its latest consolidated unaudited mortgage market flash report yesterday (12 December) indicating that +90 day arrears in Principal Dwelling Houses (PDH) declined by 302 cases in October to 80,854 (11.6% of total PDH mortgages). The data series covers the six main Irish lenders (AIB, BoI, ptsb, KBC, Ulster, ACC). Permanent PDH mortgage restructures increased by 3,855 in October to 49,032 solutions, with term extensions (14,804) and arrears capitalisation (13,093) continuing to make up the majority of treatment strategies. The number of split mortgages rose to 4,798 (from 3,688 in the previous month). Encouragingly temporary restructures relating to PDH +90day arrears declined by 801 in the month to 6,196 cases, while permanent restructures increased by 1,440 to 12,956 work-outs (implying further efforts by the banks to move to long-term sustainable solutions). On the buy-to-let (BTL) side, +90 day arrears increased slightly (129) in October to 26,489 (20.7% of total BTL mortgages).
<p>
The latest data series form the DoF provides further evidence that the inflection point in late PDH arrears has been reached, with the banks continuing to make tangible progress in working out their stock of impaired loans. Following the removal of legal and regulatory obstacles, the sector should be in a better position to restructure loans over coming months while exposing and dealing with strategic defaulters in the process.
<p><h5>Ciaran Callaghan</h5>
Disclaimer: www.merrion-capital.com/disclaimer
Merrion Stockbrokers Limited (registration no. 307878)
is a limited liability company whose registered office is at
Block C, The Sweepstakes Centre, Ballsbridge, Dublin 4, Ireland.