The rate of Irish owner-occupier mortgages in arrears for at least three months fell to the lowest level since 2009 in June, according to Central Bank data.
Some 3.5 per cent of private-dwelling home mortgage accounts were in arrears over 90 days at the end of the second quarter, down from 4 per cent a year earlier, and post-crash peak of almost 13 per cent in 2013.
At end-June, 75 per cent of accounts in arrears over 90 days were held by non-banks.
The number of accounts in long-term arrears – or greater than 1 year – was 18,044, equating to 2.6 per cent of all owner-occupier accounts. Still, this was down by more than 2,000 accounts from the same date last year.
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Some 10 per cent of buy-to-let mortgages were in arrears for at least three months at the end of June, albeit down from 11.4 per cent a year earlier.
The ongoing decline in arrears has been helped by continued resilience in the domestic economy and rising house prices, even as global outlook has deteriorated in the past year amid concerns over the Trump administration’s trade policies. The Central Bank forecasts that the domestic economy – measured as modified domestic demand – will expand 2.9 per cent this year and a further 2.2 per cent in 2026.
While the unemployment rate inched up to 4.7 per cent in August from 4.1 per cent a year earlier, according to the latest figures from the Central Statistics Office (CSO).
Home prices rose by 7.5 per cent in the year to July, according to the CSO.
Fergal O’Leary, chief commercial officer at Núa Money, which entered the mortgage market in the middle of last year, said that while the ongoing decline in arrears is “encouraging”, there is no room for complacency.
“The economic outlook is softening, with slower growth forecast from 2026, potential rises in unemployment, and uncertainty linked to international trade tensions,” he said. “At the same time, house prices and average mortgage drawdowns remain at record levels, which could leave some borrowers more exposed if conditions change.”
