Homebuyers are feeling less confident about the housing and mortgage markets following a summer of natural disasters, according to results of the latest Genworth Homebuyer Confidence Index, which fell 1.5 per cent since September 2010.

Queensland borrowers are most affected with one in three survey respondents being impacted in some way by natural disasters. This has caused Genworth’s Hardship requests to spike by over 70 per cent since the same time last year, 40 per cent of this increase being natural disaster related.

Worryingly, according to the survey, over one in five (21 per cent) disaster-affected borrowers expects to struggle with their mortgage for six months or more. The key cause of future mortgage stress is now seen by borrowers to be the rising costs of living rather than interest rate hikes.

Despite industry concerns about some first homebuyers over-committing to high debt levels, the index shows these home owners are coping well with above average levels of confidence. However, higher debt levels in this segment are likely to weigh down these borrowers in the year ahead.