According to the latest data released by the Bank of England, the number of mortgage delinquent accounts in the UK surged to 176,000 in the third quarter, an increase of 25,000 compared with the same period of last year, and the corresponding total mortgage delinquent loans soared by 44% year-on-year to 18.8 billion pounds. This data reveals that among the total outstanding mortgage loans, the proportion of total mortgage loans in arrears in the third quarter rose from 1.02% in the previous three months to 1.14%. This reversal trend marks a long-term decline in mortgage arrears, while setting a new high since the second quarter of 2017.
Experts pointed out that many British families are facing the double impact of high mortgage, food and energy costs, and some of them are even in financial difficulties. The data reflects the impact of high borrowing costs on British household finance. Due to the rising cost of borrowing and the pressure of inflation, homeowners are in financial crisis, which increases the extra burden on the already tight family budget and increases the risk of losing their homes.
In the past two years, the Bank of England raised the interest rate from the historical low of 0.1% to the current 5.25%, which led to a slowdown in housing demand and made it difficult for more people to cope with the repayment of mortgage loans. In addition, the Bank of England’s data also shows that the proportion of total mortgage loans used for house purchase and rental purposes has dropped to 7.5%, reaching the lowest level since 2010. This reflects the changes in the landlord tax system in recent years and the challenging interest rate environment. Investment experts stressed that the landlord’s profit protection is facing difficulties, leading some people to choose to stop expanding the real estate portfolio or completely withdraw from the market.
The publication of this data highlights the new challenges facing the British mortgage market, and at the same time, it has aroused widespread concern about the stability of family finance and housing market.
Post time: Dec-21-2023