Borrowers with good credit records struggle with mortgage debt
According to the ratings agency Moody`s, an increasing number of homeowners with previously clean credit records are falling at least three months behind with payments towards their mortgage debt, The Times reports.
The agency found that in the second quarter of the year, 1.8% of `prime home loans` were behind by at least three months, compared with just 0.9% in 2008.
Rising unemployment and restrictions on the availability of mortgages are expected to lead more homeowners into arrears throughout the rest of the year.
However, despite more people having difficulties making payments towards their mortgage debt, Moody`s recorded a fall in repossessions, suggesting that banks and building societies were showing `extended forbearance` to customers struggling with debt – and that lower interest rates were also helping.
A spokesperson for Debt Advisers Direct commented: “It is encouraging to see banks and building societies helping people experiencing financial difficulties.
“Even so, it`s important that anyone struggling to make payments to their mortgage – or any other debt for that matter – seeks professional debt advice as soon their problems become apparent.”
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