Moodys (the credit rating agency) have reported an increase of arrears amongst 'prime' borrowers, doubling from the same period a year ago.
The important aspects to remember here are rising unemployment, across all sectors, borrowers coming off fixed rate terms onto lenders standard variable rates and the lack of re-mortgage options on the market.
The 500,000 borrowers 90 days plus in arrears forecast by the CML at the beginning of the year may not be reached in 2009, but expect a steady increase through the latter part of this year and something very close to the forecast next year as these factors take effect.
No comments:
Post a Comment