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Sub-prime sector sees 29% arrears

Sub-prime arrears in the UK rose to 28.6% in Q4 2008 from 25.1% in the previous quarter, a report from Standard & Poor’s reveals.

The report from S&P Ratings Services shows that arrears of more than 90 days stood at 12.5% com-pared with 10.3% in Q3. Repossession cases also rose, going from 2.8% to 3.5% in three months.

Kate Livesey, analyst at S&P Ratings Services, says: “Increases in delinquencies during 2008 were primarily driven by affordability issues coupled with the inability of borrowers to refinance.”

Richard Sexton, director of business development at e.surv, says: “Repossessions have yet to peak, although they are likely to do so in 2009. We’re still on the upward part of the curve.”

But he adds that lenders can be in negotiations for 14 months before applying for repossessions.

He says: “Lenders are not rushing to repossess. These figures are a reflection of the market.”


It’s time for action, not hand wringing

Although mortgage lending and house sales are inextricably linked, the government’s attempt to breathe confidence into the banking system has not stimulated new life in either.

More base rate cuts will achieve little

The recent announcement by Northern Rock that it intends to return more actively to the lending market is likely to be widely welcomed, particularly by the broker community where it has historically distributed the majority of its funds.


Health Shield joins the Association of Medical Insurance Intermediaries

Health cash plan provider Health Shield has joined the Association of Medical Insurance Intermediaries (AMII) as a corporate member. The non-profit-making Friendly Society is one of eight health cash plan providers to join the intermediary trade body, which is looking to establish working parties with intermediaries and providers on issues such as product innovation and regulation.


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