Low doc arrears twice those of prime home loans
Arrears on low doc loans are twice those of prime home loans, data published by Standard & Poor’s shows. S&P said that as of February 2006, 2.1 per cent of prime low doc loans were in arrears by more than 30 days, compared with 1.06 per cent of prime full doc loans. Arrears are also on the rise in each category. For full doc loans, arrears in February 2006 were 1.06 per cent, stable with January 2006 but up from 0.9 per cent in April 2005. Low doc loan arrears in February 2006 were 2.1 per cent, also stable with January 2006 but up from 1.86 per cent in April 2005.