The available evidence would suggest that the worst default rates relate to mortgages that were originated between 2004-2007, when trackers were widely available:-
The appalling default rate is the proximate cause of the high cost of credit in Ireland - not the other way around.
At this stage it really is extraordinary that 20% of outstanding mortgages are still non-performing. If people want lower mortgage rates, they should be screaming at their public representatives to sort this out.
If it means that the lender has not received all of the planned payments to date, then I wouldn't be shocked.
For example lots of borrowers will have taken an interest-only period at some stage and won't "catch up" until the last repayment is made.
If it means that the lender has not received all payments in full for the last 12 months, then 20% seems a very big number.
"A loan is only deemed non-performing if it is in default or close to default. More precisely, a loan is non-performing when payments of interest and principal are past due by 90 days or more, in accordance with the Basel II definition of default, or when there are good reasons to doubt that debt payments will be made in full."
Where a borrower is meeting their obligations under a renegotiated loan that wouldn't be considered non-performing.
The ECB has launched a public consultation on guidance to banks on how they should tackle non-performing loans:-