The lenders’ trade body - UK Finance - says that despite the wider economic problems there has been no impact on headline mortgage arrears in the third quarter of 2022.
Overall arrears continued to fall in Q3; however, it warns that the burdens from falling incomes and higher mortgages could mean an uptick in arrears next quarter and into next year.
Possession numbers remain substantially lower than previous normal levels and UK Finance says that possession is always a last resort, and those going through the courts at the moment are historic cases relating to long-term arrears built up over a period of years.
Eric Leenders, managing director of personal finance at UK Finance, says: “The levels of home buying and selling were in line with pre-pandemic trends in Q3, but we expect activity to cool next year. Cost of living pressures and changing employment patterns are likely to have an impact on demand and affordability going forward.
“At the same time, 1.8m fixed rate deals are due to end in 2023, so refinancing levels will be robust. We would encourage customers to speak to a mortgage advisor and shop around for the best deal for their circumstances.
“Lenders are here to help. Anyone who is worried about their mortgage, loan or credit card payments, should speak to their lender as soon as possible to discuss the options available to help.”
And Krishnapriya Banerjee, a managing director in Accenture’s UK banking practice, adds: “Waning consumer confidence shows that people are bracing for tougher times ahead and seeking to stretch affordability. Banks will need to address the twin challenge of supporting households through this uncertain economic period whilst ensuring they have sufficient operational resilience to handle the weight of growing customer demands.”
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They are low at the moment, this has only just begun.
February will be the month, energy bills, Christmas shopping on the credit cards will need paying, and the self employed having paid their income tax, no money to pay the mortgage or rent
Rather doomdayish I would say?
And as the Govt. have announced, they are not planning on more houses, then for sure the availability of housing will shrink, with increase of population as well as immigrates the housing stock will effectively shrink, meaning that house prises will increase.
I look forward to my properties giving me more ££££££.
:-)
Property owners understand how important it is to pay the mortgage and avoid the risk of repossession.
Most sensible tenants act likewise but the naive believe Shelter etc. propaganda that paying rent is optional.
Well it's hardly started has it? Things will get worse and worse over the next 12 months as people come off fixed rate deals at the rate of 100,000 per month. Let's see how it's looking in 12 months time.
"Lenders are here to help" you are having a laugh.
Agree will get worse, interest rates still need to go a little higher. This will cause some major issues for some. Those on fixed rates that are ending soon, save or pay down your mortgages as the figures will not work when you factor in Section 24.
Those who bought over asking a year ago, on a cheap 2 yr fix are up the creek 😬😬
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