Home loan arrears 'increasing'

17/12/2008

Mortgage borrowers more than three months behind on their payments are on the increase, research released yesterday has shown.

Standard & Poor's (S&P), a credit rating agency, said that the number of loan holders in more than 90 days of arrears was 1.16 per cent of the total at the end of September.

In September 2007, this figure stood at 0.96 per cent.

Meanwhile, the S&P report showed that borrowers in the prime sector - who generally have more expensive homes - make up three per cent of borrowers behind on payments by a month or more.

This figure has increased over the last year by 50 per cent.

Recent repossessions data from the Council of Mortgage Lenders has predicted a rise in home repossessions for 2008.

This is due in part to the credit crunch, which started in summer 2007 and has since restricted the number of cheap mortgage deals left on the market.

Tags; Housing Debt and Bills, Young Family Finances,

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