Record number of homeowners face loan default

Families are staring down a debt nightmare, with a record number of homeowners now at risk of defaulting on their loans after falling behind on their repayments, new industry data has revealed. The figures showed the number of households at risk of default jumped 18 per cent nationally over the past three months, marking the steepest rise since risk tracking records began in 2001. It’s raised fresh alarm over the pressure facing borrowers after three interest rate hikes this year, plus previous years of soaring living costs and stubborn inflation. The research by Digital Finance Analytics, done for comparison group OurTop10, indicated households were running out of a buffer of emergency funds, leaving them vulnerable to more rate hikes. Digital Finance Analytics director Martin North said many households were financially underwater. Picture: Hollie Adams Digital Finance Analytics director Martin North said this pressure was most acute for those who bought homes in recent years. Recent buyers had often stretched themselves too far to pay lofty house prices, he said. Many of these buyers had spent years burning through savings after purchasing their homes and had reached a “tipping p...