Prime mortgage arrears at worst figure for 8 years

Date:Tuesday 16th December 2008
Author: Max Freedman

Arrears of prime mortgage borrowers have gone to their worst level for eight years.

Standard & Poor reported that the percentage of borrowers in this category who are one month or more behind in payments has risen by 50 per cent.

A spokesperson for Standard & Poor commented: "Delinquencies are an indication of future defaults and the current increases in combination with falling house prices will start to put pressure on ratings for the first time."

According to Standard & Poor's findings, the percentage of borrowers who are in arrears of 90 days or more, has gone from 0.96 per cent of all loans to 1.16 per cent.

The percentage of delinquent loans to prime mortgage holders at the end of September compared to a year earlier was 3.24 per cent, the highest since 2000.

Standard and Poor provides information on such subjects as financial markets and risk evaluation.

It carries out independent analysis and research and has a workforce of 8,500 people.