Private Finance comments on UK Finance Mortgage Arrears and Possessions
Shaun Church, Director at Private Finance, comments on UK Finance Mortgage Arrears and Possessions, published 8 August 2019.
Read the UK Finance Mortgage Arrears and Possessions In full.
“Ultra-competitive mortgage rates are helping to keep mortgage arrears at historic lows. Mortgage payments continue to remain incredibly affordable in relation to income. For those remortgaging, just 16p in every £1 they earn is now being spent on their mortgage payments, while for first-time buyers this is only slighter higher at 17p for every £1.*
“Growing availability of competitively priced fixed-rate products in particular helps to avoid mortgage arrears, as borrowers can enjoy consistent monthly repayments with no unexpected rises during the fixed period. To guarantee the favourable rates of today for years to come, borrowers that have no plans to move in the foreseeable future should consider future-proofing their mortgage and taking advantage of the long term fixes the market are currently offering for a very minimal premium. The new 15-year fix from Virgin Money in particular offers borrowers a new level of security for a similar price of a 10-year fix, meaning those in their forever homes can achieve five years of extra security for little additional cost.”
*UK Finance mortgage lending trends – Percentage of monthly gross income to service capital and interest repayments
Kindly shared by Private Finance