One in four Belgian borrowers in “delicate” position
Thursday, 08 February 2018
It emerges from a survey, reported by Le Soir on Thursday, that one in four borrowers are in a “delicate” position financially. The survey, compiled by the Banque Nationale de Belgique (BNB), focused upon the financial behaviour of households. Upon suffering a loss of household income, 26% of households could not make their monthly mortgage payment for more than six months.
According to conclusions drawn from the survey, although 30% of households are paying off a mortgage, they are not all in the same position in terms of the stage of paying off the debt. Thus for 10.2% of them, the capital remaining to be repaid is more than 80% of the value of the given property.
In this sample, the percentage is slightly higher (12.8%) for households with a monthly mortgage repayment absorbing more than 30% of gross household income. Moreover, 26% of households do not have sufficient savings to enable them to cover monthly mortgage payments for more than six months, in the event of a loss of household income. In other words, a deep recession, accompanied by job losses and a reduction in incomes, would place a significant number of households with a mortgage in financial difficulties.