Increases in mortgage arrears have been modest so far this year but there is worse to come, if the latest consumer survey is any guide.
According to research commissioned by AMP, involving more than 1000 respondents surveyed online last month by Dynata, 69 per cent of mortgage borrowers are worried about meeting their repayments “now and if interest rates continue to rise”.
Thirty-one per cent of respondents said they are worried about meeting their mortgage repayments right now. This is up from 23 per cent in February.
Those aged 25 to 44 are particularly concerned, with 88 per cent worried that further rate increases will result in them not being able to make their repayments.
Three-quarters (76 per cent) of all respondents said they have made changes to their spending, and half said they can’t do more to curb spending in order to meet rising costs.
The survey also found that few borrowers with a small savings buffer were seeking assistance from their lender. These people have savings buffers of up to three months of mortgage repayments. Seventy-three per cent had not contacted their lender to ask for a more competitive rate or any other kind of assistance.