Brian Murphy, Head of Lending at Mortgage Advice Bureau (MAB), comments on the fall of mortgage arrears and repossessions in Q1 2015:
“The low interest rate environment has played a big role in reducing cases of arrears and repossessions among mortgage borrowers. Today’s data shows the picture continuing to improve and suggests that, on the whole, households are increasingly comfortable with managing their borrowing commitments without falling into difficulties.
“The big challenge for industry will be to keep arrears and repossessions low with a higher base rate to contend with. Yesterday’s notice from the Bank of England of a potential rate rise in early 2016 still gives mortgage holders plenty of time to review their current deals and lock into low rates if it suits their circumstances.
“Affordability checks will be a big help in making sure new borrowing commitments don’t tip household budgets over the edge when rates start to climb. If borrowers find their repayments become harder to manage, they should not hesitate before contacting their existing lender or exploring wider options with the help of a broker.”