Rise in mortgage defaults despite 0.5% rates - Bank of England | This is Money

Rise in mortgage defaults despite 0.5% rates - Bank of England | This is Money

The number of borrowers unable to pay their mortgage bills rose unexpectedly in the first quarter, official figures showed today, with lenders warning of further defaults if interest rates rise.

Mortgage lenders reported the first rise in default rates since the second quarter of 2009 when the UK was still in recession, the Bank of England said.
A balance of 11% of lenders surveyed by the Bank said mortgage defaults rose in the first three months of 2011, whereas they had expected the number to remain flat.

The shock rise came despite interest rates being kept at a record low of 0.5% for two years.