If people are struggling to pay mortgages now, what happens if interest rates go up, asks Craig Binnie
IFTEEN per cent of borrowers says they are struggling with their mortgage payments even though interest rates are at a generational low.
Fortunately 68 per cent of borrowers expect to easily meet their repayments.
A year ago, when rates were considerably higher, the figure for struggling borrowers was 23 per cent.
A survey by mortgage insurer Genworth Financial found first-home buyers more likely to be struggling with their repayments (19 per cent) than investors (9 per cent).
Borrowers who were doing all right now but expected to have trouble in the future were most likely to be middle-income earners who had several debts and were facing the threat of unemployment.
Genworth chief executive Martin Barter says apart from their mortgage, struggling borrowers had more debt than the national average such as a personal loan, car loan, investment