These three lenders are seeing the most home loan arrears
Lucas BairdReporter
Key Points
- Why it matters: Pepper Money and other non-banks are major mortgage providers
- There has been a surge in borrowers missing payments at these companies
- But delinquencies are rising off a low base, credit ratings agency Fitch says
Non-bank lenders Victorian Mortgage Group, Pepper Money and Bluestone have some of the most delinquent mortgage books in Australia, with arrears over or near 5 per cent as rate rises exert further pressure on households.
The increase in delinquencies towards the middle of the year plays against trend, with arrears typically at their highest in January and February after the heavy spending Christmas period. This, according to VMG boss Bernie McIntosh, was due to how quickly interest rates had risen in the past year.
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