Bond Defaults Up 21.5% From 6 Months Ago

Unpaid home loans soar

In the third quarter of this year 70 000 homeowners were more than two months behind with their bond instalments - 21.5% more than in the first quarter.

At the same time, 25 000 homeowners were more than four months behind and in danger of losing their houses. This figure shot up from 18 000 in the first quarter.

These shocking figures have become evident from the Alliance Group's latest research for the third quarter.

CE Rael Levitt says that indications are that the numbers will climb. "The residential market is slipping backwards and, if the macroeconomic climate weakens further, more and more homeowners will experience serious mortgage stress."

He says that stressed sales being handled by the group are growing 20% month by month.