THE NUMBER of mortgage-holders falling into default appears to be levelling off, according to the latest data from ratings agency Moody’s. Figures released yesterday on mortgage-backed bonds show that the incidence of loans where interest has not been paid for more than 90 days decreased slightly between November and December.

Moody’s said 3.24 per cent of Irish residential mortgages backing bonds issued by financial institutions were in 90-day arrears in December, down from 3.26 per cent in the previous month. The proportion of the loans in actual default also declined, from 0.82 per cent to 0.72 per cent.

Annual comparisons remain stark, however, with 90-day delinquency rates 110 per cent higher in December than in the same month of 2008. Defaults were up 167.1 per cent on the same basis, although the rate of annual increase in both cases was slower than in November.

First Active had the highest rate of 90-day delinquencies in December, with 4.87 per cent of the residential mortgages backing its bonds falling into this category. It also reported the highest default rate of 1.6 per cent, with both rates having increased since November.

Bank of Scotland (Ireland), which is exiting the Irish market, had the next-highest 90-day default rate in respect of its bonds.