Report by Moody’s Ratings predicts a modest rise in mortgage arrears amid pressure from rates and inflation

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Report by Moody’s Ratings predicts a modest rise in mortgage arrears amid pressure from rates and inflation

About one in 25 sub-prime borrowers were behind on their mortgage at the end of June, after being taking hits from rising interest rates and cost of living pain.

Arrears are surging from a very low level during the pandemic when the official interest rate was at an emergency settings of 0.1 per cent — but it’s seen as a return to the long term trend.

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