Susan Gordon, Business Reporter

National Housing Trust (NHT), a state provider of low-cost housing, has processed over 2,000 mortgages in three months, which Sunday Business calculations indicate, topped $6 billion.

The increase in the NHT loan limit from $1.5 million to $3 million in April 2006 has propelled the market, with the number of mortgage loans growing by 52 per cent.

NHT expects this trend to continue in spite of spiralling housing costs.

From April 6 to June 30, contributors accessed some 2,045 mortgages, compared to 1,342 mortgages in the comparative period last year.

The mortgages which were spread across all 14 parishes, were predominantly open-market loans, according to the trust.

However, 1,323 or almost two thirds of the mortgages, were issued in Kingston, St. Andrew, St. Catherine and St. James.

With an average amount of $3 million to fund open-market purchases, the 2,045 loans means the the housing trust paying out $6.13 billion in loans in the three months.

Joint mortgage programme

That figure, however, is only a portion of NHT loans for the period, since the mortgage figures it announced did not include loans granted through building societies under the joint mortgage programme nor the Inner-City Housing Project.

"An increase in loans is expected to continue over the year," NHT communications officer Karlene Morgan told Sunday Business.

In June 2006, NHT's loan portfolio to beneficiaries stood at $42 billion, issued for 71,000 loans.

Some $426 million or 10 per cent of this value was listed as impaired loans by the trust.