New figures from Standard and Poor’s has shown that over 20 per cent of home buyers with a troubled credit history have fallen behind on their mortgage payments. The data also showed that in the first three months of the year, there has been an increase of delinquencies amongst home buyers with a good credit history.
The data is designed to show how mortgages are performing, and is based on the behaviour of home buyers whose loans have been packed into mortgage backed securities which account for 80 per cent of £43 billion subprime mortgage market.
In the first three months of the year, delinquencies made up 21.63% of all loans to borrowers with poor or no credit history, whilst serious delinquencies accounted for 10.6% of the loans. Unless lenders are willing to modify the terms of the loans, over £7 billion of loans are at risk of delinquency.
One in Five Home Buyers Falling Behind on Loan Payments
Mon, 02 Jun 2008
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