Market comment - Mortgage arrears continue to edge lower

Davy Research
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The latest batch of mortgage arrears data from the Central Bank show that the number of problem loans continues to edge lower. In Q2 2017, 90-day arrears fell to 7.1% of the outstanding stock of owner-occupier loans and 15.5% of buy-to-let (BTL) loans. Nonetheless, long-term arrears account for a majority of remaining arrears cases. Repossession looks like the ultimate solution for many remaining arrears cases but the government is also piloting a refreshed mortgage-to-rent scheme to keep borrowers in their homes. The details of the scheme are expected to be announced imminently.