The number of housing loans with payments overdue crept up further in May, giving weight to concerns about potential problems emerging for banks if the economy gets into trouble.

The latest rise was only small, with 1.14 per cent of loans in arrears, compared to 1.07 per cent in April, according to new data from S&P Global Ratings on Monday.

Warning bells as arrears continue to edge higher Credit:Arsineh Houspian

And, although it was the seventh rise in a row, that would not normally be a reason for concern.

Fluctuations in home loan arrears are seasonal, typically falling to lows in the spring before peaking in late summer and remaining relatively high through the autumn months.