Big jump in mortgage arrears

The proportion of prime residential mortgages three months or more in arrears has more than doubled in the past year, according to data published by Moody’s. The proportion of mortgages 90 days or more in arrears jumped from 0.74 per cent of all loans in the first quarter of 2008, to 1.66 per cent in the first quarter of 2009. Moody’s said the deterioration could partly be attributed to the slowing house market, making it difficult for borrowers to refinance or sell their property.