Mortgage stress hits 11 year low
According to Fitch's dinkum index, mortgage arrears decreased in the last quarter of 2015 to 0.95 per cent, the lowest fourth quarter level for the past 11 years. This reflects strong house price growth, low unemployment, low standard variable rate and low CPI.
Fitch suggested most mortgage repayment delinquency may be due to non-economic factors like divorce, illness or extraordinary expenses.
Self-employed borrowers continue to experience financial difficulties and recorded a 0.32 percentage point increase in 30-day arrears to 7.29 per cent.
Source: Banking Day