ROOF Blog

The proportion of prime residential mortgages three months or more in arrears has more than doubled in the past year, according to data published by Moody’s. The proportion of mortgages 90 days or more in arrears jumped from 0.74 per cent of all loans in the first quarter of 2008, to 1.66 per cent in the first quarter of 2009. Moody’s said the deterioration could partly be attributed to the slowing house market, making it difficult for borrowers to refinance or sell their property.

The prime minister dismissed as ridiculous David Cameron’s claims that Britain’s economic plight was so dire that the government could be forced to go the International Monetary Fund (IMF) for a bail-out. The conservative leader suggested that the IMF was an option because Britain was at risk of running out of money as a consequence of Labour’s policies. Gordon Brown stressed that the recession was caused by international factors, and the government had taken action to stop the banks collapsing and lending again, saying it was ‘a completely different kind of event from previous recessions’.

Prime mortgage borrowers, at least one month in arrears, have risen 50 per cent to 3.24 per cent of prime loans by the end of September compared with a year earlier. The figures, from Standard & Poor’s meant that combined with falling house prices will put pressure on prime ratings for the first time. The percentage of borrowers in ‘serious’ arrears – defined as 90 days or more overdue, increased to 1.16 per cent of all loans, up from 0.96 per cent.