The number of homeowners in arrears has almost doubled between June 2008 and September 2009, according to new figures compiled by the Financial Regulator.
According to the figures, more than 26,000 mortgages, or 3.3 per cent of residential mortgages, were in arrears for 90 days or longer at the end of September this year. Of the 26,271 accounts in arrears, 17,767 homeowners were behind in payments for more than 180 days.
The figure is up from June 2008, when almost 14,000 mortgages, or 1.4 per cent of all mortgages, were more than three months in arrears.
For the quarter ending September 2009, mortgage holders owed €4.8 billion on accounts more than 90 days in arrears and €3.2 billion in respect of accounts more than 180 days in arrears.
The figures released by the regulator also showed a rise in repossession orders granted.
Some 218 enforcement proceedings were concluded during the quarter ending September 2009, with repossession orders granted in 79 cases. Six of the orders were granted for properties that were voluntarily surrendered, while two were handed down for abandoned properties.
In the remaining 139 cases, 28 properties were voluntarily surrendered, 10 were concluded by abandonment while 101 were settled either by renegotiating the mortgage or on other terms.
The Irish Banking Federation said the latest data reaffirmed the importance of early communication between borrowers and lenders.
Chief executive Pat Farrell said the IBF was acutely aware of the pressures facing some homeowners in the current economic environment. "We remain firmly of the view that – where genuine repayment difficulties arise - early, constructive communication between the borrower and the lender is the best way to deliver mutually-acceptable outcomes," he said.
Labour spokesman on housing Ciarán Lynch said: “I believe that the 331 repossessions are really just the tip of the iceberg, and when you consider that €4.8bn is owed on mortgage arrears, it would seem that the worst is yet to come”.