MORE THAN one in every five borrowers on subprime mortgages in Britain fell behind on their repayments in the first three months of the year, according to new data by ratings agency, Standard & Poor's (S&P).
S&P said there was a "sharp" rise on prime UK mortgage delinquencies, defined as arrears of more than 30 days, though they were still at a relatively low level, increasing to 2.4 per cent from 2.1 per cent in the last three months of last year. The report, which shows for the first time how UK mortgages are performing this year, put subprime delinquencies at 21.7 per cent, up from 19.4 per cent. The report was based on an analysis of securitisations, which account for about a fifth of the prime mortgage market.
Davy Stockbrokers pointed out in a research note that Bank of Ireland and Irish Life & Permanent have recently highlighted "better than average arrears trends in their UK mortgage books".
Bank of Ireland said arrears over one month on its UK mortgages, which account for 55 per cent of a €61 billion mortgage book, amounted to 1.2 per cent at March 31st, 2008 - half the level reported by S&P and a slight increase from the 1.1 per cent reported by the bank in March and September 2007.
The bank said it didn't expect a significant increased in arrears on its mortgage book.
Irish Life & Permanent said in a recent management statement that arrears in its UK mortgage business, Capital Home Loans, continued to run at about half the level of the overall sector.
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/VR3765MFOBH2NMV2QNICYDF67M.png)