S&P Global Ratings’ Erin Kitson says increased savings during the pandemic have enabled many borrowers to “get ahead” of their mortgage repayments.

Ms Kitson said during the pandemic the savings rate increased to around 20 per cent at its peak.

“Now the flow-on effects of that from a debts serviceability perspective is that’s helped build repayment buffers which has enable many borrowers to get ahead of their mortgage repayments,” she told Sky News Business Editor Ross Greenwood.

She said it has also increased resilience for many outstanding loan mortgages.

“So that channelling of savings into building up repayment buffers has added some resilience to the broader financial sector and particularly a lot of borrowers with mortgages,” she said.

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