The proportion of UK subprime mortgages falling into arrears has jumped to 10%, according to data produced by Moody’s. The latest data underlines the pressure building on UK homeowners as the economy starts to worsen and borrowers struggle to repay their mortgage loans. Moody’s monitored the performance of 87 UK securitisation transactions containing home loans made to subprime borrowers and found that the number of mortgages in arrears jumped from 7.3% in the second quarter of 2007 to 10.2% per cent in Q2 this year - far higher than the industry average for mortgage arrears, which is 1.33% of all home loans, according to the Council of Mortgage Lenders.
