The latest set of mortgage arrears data has been released by the Financial Regulator. There are now 8.1% of mortgages in arrears of 90 days or more.
There have been some suggestions that there is an increased number of “won’t pay” as opposed to “can’t pay” borrowers in the recent increase because of the debate about debt forgiveness and bankruptcy last August and September. If someone decided not to pay at this time it is unlikely that they would have been 90 days in arrears when the data were collected.
Most of the current quarterly increase is still likely to be as a result of those in the “can’t pay” category. This may be different in subsequent updates. Any change in bankruptcy law is not going to make provision for someone to be declared bankrupt because they won’t pay their debts.