Thousands of homeowners in long-term arrears have simply given up on paying their mortgage, new figures show.
The average outstanding balance of accounts making no repayment last year is almost €250,000, and most of those borrowers were more than five years behind on their payments.
In fact, more than half of borrowers in long-term mortgage arrears were making no repayments on their mortgages last year and the year before.
The worrying figures are revealed in a new Central Bank report. It shows just over 22% of mortgage holders last year paid some but less than 50% of the monthly amount due.
The rest were paying more than 50% towards their mortgage in both years.
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At end of last year, 15,000 - 55% of all accounts in long-term arrears were regarded as "not co-operating", which is down from almost 16,000 at the end of 2020.
Campaigner David Hall of the Irish Mortgage Holders Organisation, said: "Ultimately if you don't pay your mortgage there's a process there to repossess homes. Banks and vultures funds have chosen not to adopt that.
"If they had adopted it, the tsunami of repossessions would have come. For some reason those repossessions haven't happened and people are saying there will be no tsunami, it's not going to happen.
"When you're told that there's no risk of losing your home, why is anyone surprised that people aren't paying the mortgage?
"Technically and legally speaking, there should have been a tsunami of repossessions and this data is evidence of that," he said.
The statistics were released as Bank of Ireland announced last night it was hiking fixed rates for new mortgages by 0.25% in light of recent European Central Bank base rate increases to tackle runaway inflation.
The increase will add €38 a month, or €456 a year, to a €300,000 30-year mortgage.
However, the bank said mortgage applicants who have a written quote for a lower fixed rate, and who draw down a new mortgage by December 9, can keep the lower rate offer until that date.
In the 12 months to June there was a further decrease of 12% in long-term mortgage arrears. The Central Bank's Director of Consumer Protection, Colm Kincaid, said: "Our data shows that the number of accounts in long-term mortgage arrears continues to decline. For the first time since the Central Bank started its data collection on mortgage arrears, long-term arrears have fallen below 25,000 accounts.
"This is the result of hard work by borrowers and firms to reduce this number, particularly over the last 12 months.
"It shows that, by working together within a defined regulatory framework, there can be solutions that work for both borrowers and firms. This past decade or more, we have learned a lot about the impact that arrears can have on borrowers and our society.
"This has included lessons about the importance of lenders having both responsible lending practices and effective arrangements in place to anticipate arrears cases and support borrowers seeking to resolve their arrears."
