The number of borrowers missing mortgage repayments for 90 days or more increased again in the three months to the end of June, according to the latest quarterly figures for mortgage arrears released by the Central Bank.

The amount of mortgages in arrears of 90 days or more now stands at 10.9% of all residential mortgages in the country. This has increased from 10.2% in March. This is €16.5 billion or 14.7 per cent of the €112 billion owed on residential mortgages. A high percentage of the mortgages in arrears have been restructured to allow borrowers to make some form of repayment towards the mortgage. The restructuring options which people availed of include switching to interest only, reducing the capital and interest payments or extensions to the terms of the mortgages.

The Central Bank released figures which showed that legal proceedings were issued to enforce on debt or security on a mortgage in 345 cases during the second quarter of the year. In 193 cases before the courts, 97 orders were granted for possession or sale of the property. Some borrowers have voluntarily surrendered the property for sale. In these cases, the money from the sale was unlikely to cover the whole of the outstanding mortgage. It is likely that the borrowers, through negotiation with their bank made an agreement to deal with the balance debt such as a debt write off, personal loans or other property being offered as security.

It is not clear how much of an effect the Personal Insolvency Legislation will have on helping struggling borrowers with their mortgages and other debts. We can act for you on the sale of property and negotiate with your bank on the balance debt.