A new report is warning that mortgage arrears amongst owner occupiers in Ireland could peak at 16.5%.

The prediction is contained in a paper on the Irish economy from Davy research.

It also expresses concern about arrears on buy-to-let mortgages.

They see them as running at more than twice the rate of the owner-occupier category.

Conaill MacCoille is the Chief Economist at Davy.

He says the problem of arrears needs to be sorted for the sake of overall Irish economic recovery.

He spoke with Breakfast here on Newstalk.