View more on these topics

Mortgage arrears set to go on rising

A surge in the levels of levels of mortgage arrears is set to continue, says NCI Resources.

The firm, which provides mortgage arrears counselling services for lenders, says the rise in arrears has led to a 10 per cent increase in its business.

NCI says the increase is due to the five rises in interest rates, with borrowers coming to the end of low fixed-rate deals and having to replace them at higher rates.

It adds that many borrowers have overstretched their finances, therefore running out of capacity and failing to meet commitments when hit with extra expenses such as property maintenance bills.

These problems have been compounded because lenders have tightened the rules on remortgages so borrowers in financial trouble cannot use this as an escape route, says NCI.

It says borrowers who cannot remortgage form the bulk of those falling behind with payments.

Director Adrian Bloom- field says: “Past arrears and eviction problems, such as we experienced in the early 1990s, have been set alongside sharp rises in interest rates and significant falls in the value of residential property. The recent increase in the level of arrears is not good news but it has not created any serious major problems.”

Recommended

Women IFAs offer lifestyle planning

A million UK businesses are owned by women, contributing over 115bn to the economy and expanding the need for female-focused financial advice, says new IFA firm Elements.

Webline announces deal with Avail

Webline has announced an agreement with Avail, the specialist suitability software provider to launch an integrated service for the portals users.Advisers will now be able to generate client specific suitability letters, demands and needs statements and mortgage confirmation letters, all personalised for the client within the portal.The facility is available on a 30 day free […]

Harris Associates' view on the UK’s vote to leave the EU

By David Herro, Partner, Deputy Chairman, Portfolio Manager and Chief Investment Officer of International Equity at Harris Associates Britain’s vote to exit the European Union has led to significant uncertainty across global markets. We believe market impact of this uncertainty, though severe, is more of a shorter-term phenomenon which will provide an opportunity for long-term […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com