Low risk borrowers are high risk

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Mortgages were most likely take out a good couple of years ago, when the borrowers were deemed by the lenders to be extremely financially stable. A few job losses and a global credit crunch later and it seems that everyone is deemed unstable by the lenders.

Low risk borrowers are high risk

The study by ratings agency Standard & Poor’s showed that the percentage of so-called “prime borrowers” – the most low risk borrowers – who were finding it difficult to repay their loan was at its highest level since 2000, when its records began.
The percentage of these loans not being paid back on time – known as “delinquent loans” – has increased to 3.24 per cent, up from 2.83 per cent, and S&P warned that the upward trend showed “no signs of abating”.