A leading figure from within the mortgage industry has suggested that the crisis over everyday living costs will lead to increasing numbers of borrowers going into arrears with their mortgages.
Charles Roe, the Director of Mortgages at UK Finance, gave a speech during its annual mortgage lunch that was held recently. In it, he speculated that the rising costs of everyday essentials that the country is starting to experience would be likely to place financial strains on those who have a mortgage.
The prices of everything from food to gas and electric are rising sharply, and this has been coupled with raised national insurance levels, creating a crisis situation for many. Roe went on to say that, while many mortgage holders are coping at the moment, lenders should expect arrears to be an issue once the increased living costs start to really hit.
Roe then stated that the sector was prepared to support borrowers who find it hard to cope with the monetary pressures, and that it could capitalise on its post-Covid-19 momentum by doing so. According to Mortgage Solutions, he then issued the following call:
“Our message is clear: customers worried about meeting their loan payments should speak to their lenders early, who stand ready to help.”
Roe concluded by pointing out that lenders had already allowed three million borrowers to defer repayments.
Professionals with the CeMAP mortgage advisor qualification can use this situation to reach out to borrowers and help them create repayment plans.