Irish mortgage arrears hit record lows in Q4 2025
The Central Bank of Ireland reported that residential mortgage arrears reached record lows in Q4 2025. The number of principal dwelling house accounts over 90 days in arrears fell to 21,833, representing 3.1 percent of all outstanding accounts.
Record lows for principal dwelling arrears
The Central Bank of Ireland's Q4 2025 statistics reveal a continued decline in residential mortgage arrears, reaching historic lows.
The number of principal dwelling house (PDH) accounts in arrears over 90 days stood at 21,833 at end-December 2025, representing 3.1 percent of all PDH accounts outstanding.
This figure marks the lowest proportion on record and reflects a 19 percent annual decrease.
Long-term arrears, defined as accounts greater than one year in arrears, also reached a record low of 16,155 accounts, or 2.3 percent of all PDH accounts.
This represents a significant fall of 3,087 accounts (16 percent) year-on-year and a decrease of 1,412 accounts from Q3 2025.
Non-bank entities held a substantial 75 percent of PDH accounts in arrears over 90 days at end-December.
Overall, there were 698,445 private residential mortgage accounts for principal dwellings in the Republic of Ireland, with a total outstanding balance of €109 billion.
Of these, 35,232 accounts were in arrears, a 2.4 percent quarterly decrease, driven entirely by a reduction in accounts in arrears longer than 90 days.
However, accounts in early arrears (less than 90 days) increased by 8.7 percent (1,072 accounts) from Q3 2025.
Buy-to-let and restructuring trends
Beyond principal dwelling houses, buy-to-let (BTL) mortgage arrears also saw significant declines.
At end-December 2025, there were 47,320 BTL accounts with an outstanding balance of €6.6 billion.
The number of BTL accounts in arrears decreased by 8 percent quarterly (515 accounts) and 20 percent annually (1,405 accounts).
Specifically, 4,616 BTL accounts (10 percent of outstanding BTL accounts) were more than 90 days in arrears.
Non-bank entities played a dominant role in this segment, holding 82 percent of all BTL accounts in arrears and 93 percent of those in arrears greater than ten years.
Restructuring arrangements remain a key component of arrears management.
A total of 54,488 PDH mortgage accounts were restructured at end-December 2025, representing 8 percent of total PDH accounts.
The majority, 84 percent, were not in arrears, and 88 percent were meeting the terms of their arrangements.
For BTL properties, 3,989 accounts were restructured, with 88 percent not in arrears.
Legal activity saw 5,039 PDH accounts in legal proceedings, while 24 PDH and 3 BTL properties were taken into possession by lenders during Q4 2025.
A sustained, but fragile recovery
The sustained reduction in mortgage arrears to historic lows underscores the effectiveness of past policy interventions and improved economic conditions.
However, the increasing concentration of long-term arrears within non-bank entities presents a structural vulnerability that warrants ongoing supervisory scrutiny.
While overall figures are positive, the uptick in early arrears for PDH accounts suggests that new financial pressures could be emerging for some households, requiring continued monitoring.