Warning as mortgage defaults rise

Pa
Thursday 31 March 2011 11:33 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

The number of borrowers unable to pay their mortgage bills rose unexpectedly in the first quarter and lenders are warning of further defaults if interest rates rise, according to research today.

Mortgage lenders reported the first rise in default rates since the second quarter of 2009 when the UK was still in recession, the Bank of England said.

A balance of 11% of lenders surveyed by the Bank said mortgage defaults rose in the first three months of 2011, whereas they had expected the number to remain flat.

The result comes despite the Bank's base rate being held at a record low of 0.5% and lenders cautioned that a rise in interest rates could see default levels increase further.

The balance of banks that expect an increase in defaults over the next three months increased to the highest level for more than a year - 14.3%.

There was also a further sharp drop in demand for mortgages as prime mortgage applications fell and a further decline is expected in the next three months.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in