Mortgage borrowers ’squeezed’
Article Category: Debt Management Help and Advice
Consumers’ debt management capabilities may be hampered by higher borrowing costs, it has been claimed.
Commenting on the latest mortgage lending figures from the Bank of England, head of mortgages at moneysupermarket.com Louise Cuming observed a "shrinking market".
An erosion in consumer choice, with many Britons finding that there are few or no mortgages available to them, is accompanied by higher costs for those products that are offered, Ms Cuming noted.
"I fear we will start to see rising arrears and repossessions," she remarked.
Meanwhile, the exit from the market of high-risk products - described by Ms Cuming as "cash cows" that offered the greatest margin returns - is to prompt a move towards higher prices, scaled-back investment and staff costs cuts, she said.
"The lack of growth is bad news for both the mortgage market and the economy as a whole," the head of mortgages stated.
The Bank revealed this week that mortgage approvals fell to a two-year low this September, with 102,000 loans approved compared to 108,000 in August.
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