I propose to take Questions Nos. 204, 210 and 211 together.
The Central Bank commenced the quarterly publication of mortgage and mortgage arrears data from the period ending September 2009. As part of this series, it commenced the publication of data on mortgage restructures in respect of primary homes in 2010 and subsequently in respect of buy to let mortgages in 2012. The outstanding number of restructured mortgage accounts for these types of mortgages at year ends, as well as the number of such mortgages currently in arrears, are set out as follows:
-
|
end-2010
|
end-2011
|
end-2012
|
Stock of restructured PDH mortgages
|
59,229
|
74,381
|
79,852
|
of which in arrears
|
24,024
|
37,584
|
37,821
|
Stock of restructured BTL mortgages
|
-
|
-
|
21,800
|
of which in arrears
|
-
|
-
|
8,331
|
It should be noted, however, that the number of restructured accounts possessing arrears at the end of each year does not indicate the level of mortgages that have slipped into arrears after initial restructuring. Restructured accounts that are in arrears is comprised of loans that had arrears both prior to restructuring (but are now performing according to the new arrangement) and loans that have slipped into arrears post restructuring. Furthermore, the annual increase in the total stock of restructures is not due exclusively to new
restructures that took place in that year, as some restructuring arrangements that were in place at the end of the previous year will have expired by the end of the following year. Therefore, those accounts whose restructuring arrangements have expired at some point during a period are not included in the overall stock of restructures at the end of that period.
The data currently published by the Central Bank relates to restructures and the type of restructure. At the end of 2012, the Central Bank advised that around 23,430 PDH mortgage accounts had a permanent restructure type of arrangement but data is not yet available on the durability of the restructured arrangement. However, as the Deputy is aware, last week the Central Bank announced new and significant targets for the main banks to offer and put in place durable and sustainable solutions for their customers in mortgage difficulty. Initially the targets are for the offer of solutions but over time targets will also be set for the conclusion of sustainable solutions and for the durability of such solutions. Arrangements will be put in place to audit and monitor progress made against these targets.