RELATIONSHIP breakdowns, illness and loss of employment are the biggest causes of mortgage stress - not having to pay higher interest rates - a mortgage insurer says.

Genworth Financial, which insures more than $55 billion worth of mortgages in Australia, recently approved its 1000th request for assistance from borrowers under its Hardship Solutions program.

Genworth country executive Peter Hall said changes in personal circumstances rather than interest rate rises were the most common reasons people fell behind in loan repayments.

"Borrowers suffering mortgage stress can avoid losing their homes if they alert their lender early,'' he said.

"There are solutions available that can keep them in their homes.''

These may include decreased repayments, interest only repayments for a set period, capitalising arrears on to the loan or repayment holidays.

Mr Hall said that under the Hardship Solutions program, 89 per cent of requests for hardship assistance were given approval.

"Of these, more than 95 per cent of borrowers were able to get back on their feet,'' he said.

"It is in no one's interest - not ours, not the lenders and certainly not the borrowers - to remove people from their homes.''

NEWS.com.au April 15th 2008