“Mortgage affordability continuing to work in homeowners’ favour” – Private Finance comments on UK Finance Mortgage Arrears

Private Finance comments on UK Finance Mortgage Arrears

Shaun Church, Director at Private Finance comments:

“Mortgage affordability continues to work in homeowners’ favour. While the upfront financial challenge of purchasing a home is still a significant obstacle to overcome, today’s figures show that once borrowers have made their upfront purchase, the ongoing cost of servicing a mortgage remains incredibly affordable.

“Against a backdrop of increased lender innovation and flexibility, the continued decline of mortgage arrears is an encouraging sign. With mortgages at a higher loan-to-value or high loan-to-income ratio on the road to becoming the new normal for many first time buyers, it’s positive to see that borrowers continue to remain on top of their payments. This should instil confidence and promote further innovation and flexibility across the mortgage market.

“Existing homeowners approaching the end of their mortgage term are urged to take full advantage of today’s competitive rates to help make their monthly repayments even more affordable. For those in a position to do so, locking into a longer term fix can also help to guarantee the low rates of today well into the future, regardless of what happens in the wider economy.”

Kindly shared by Private Finance