The number of people in arrears on their mortgages has climbed to nearly 6 per cent, while the rate of repossessions has also accelerated, figures released by the Central Bank have revealed.

The figures show a dramatic worsening of the mortgage arrears situation over the last 12 months, and €8.6 billion is now owed by account holders who are more than 90 days in arrears. Some €6.2 billion is owed on accounts over 180 days in arrears.

At the end of December, 44,508 mortgage accounts, or 5.7 per cent of the total residential mortgage accounts, were in arrears of at least 90 days compared with 28,603 accounts at the end of December 2009.

The number of mortgage accounts in arrears for more than 90 days at the end of December 2010 was up by 10 per cent since the end of last September. The rate of increase has slowed marginally from the 11.1 per cent increase in the third quarter of 2010. There are 31,338 mortgage accounts or 4 per cent of the total outstanding mortgage accounts that are over 180 days in arrears.

The Central Bank said 106 homes were repossessed during the last three months of 2010 of which 34 were repossessed on foot of court orders and 72 were repossessed following voluntary surrender or abandonment. This compares with 81 repossessions in the third quarter of last year and 101 in the last three months of 2009.

The report from the Central Bank is the first to include data on restructured mortgages, and it indicates 59,229 residential mortgage accounts were categorised as restructured at the end of last year. Of those, 35,205 are classified as performing and not in arrears.

The bank said the number of restructured loans highlighted the fact arrangements are now available to borrowers who seek help in dealing with pre-arrears or arrears difficulties.

The revised Code of Conduct on Mortgage Arrears, which came into effect at the beginning of the year, enhances protection afforded to people in arrears or pre-arrears. The bank said it was important for borrowers to engage early with their lenders to benefit from the protection afforded under the revised Code.

The data shows overall mortgage debt outstanding for private residential mortgages decreased by almost €1.7 billion since the fourth quarter of 2009.

Just over 38 per cent of mortgages that were restructured switched to interest only, while reduced payments also comprise a large percentage of restructured loans, at 28.3 per cent.