Mortgages in financial hardship up 10 percent

PHOTO: The monthly credit report from Centrix shows the number of borrowers in financial hardship reached 11,900 in April. Photo credit: Getty Images.

The number of mortgage borrowers experiencing financial hardship increased by 10 percent in April – and that number could rise, a new report shows.

The April Centrix Credit Indicator Outlook released on Tuesday, shows 11,900 mortgage accounts were flagged as under financial hardship, up 1100 (10 percent) month-on-month. This followed the end of the mortgage holiday scheme on March 31.

Under the mortgage holiday (‘mortgage deferral’) scheme, borrowers experiencing financial hardship could pause their loan principal and interest payments while they got back on their feet. Initially for six months, the scheme was extended a further six months and ended on March 31. Over the holiday period, interest costs accrued were added to their loan balance.

Centrix managing director Keith McLaughlin confirmed at the end of March, 11,900 mortgage borrowers under the scheme were reclassified as under “hardship”.

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