The
‘benign period’ during which the number of families being repossessed
or falling behind with their mortgage has remained exceptionally low
‘may be coming to an end’, the Council of Mortgage Lenders said
yesterday.
Over the last five years, these numbers have dropped every year as rock-bottom interest rates have helped people to stay in their homes and banks have shown extreme patience towards them.
But the CML said the number of families who lose their homes will pick up when the Bank of England raises the base rate, which has been frozen at 0.5 per cent since March 2009.
Bob Pannell, chief economist at the CML, said: ‘The benign period of falling arrears and possessions may be coming to an end.’
He added: ‘We remain aware that a sizeable minority of households continue to be subject to financial pressures.’
Mr Pannell said the ‘vast majority’ of families will cope with ‘a slow but certain transition to more normal interest rates’, but the most vulnerable be crippled by a rise.
Source and full story: Daily Mail, 10 December 2013
Over the last five years, these numbers have dropped every year as rock-bottom interest rates have helped people to stay in their homes and banks have shown extreme patience towards them.
But the CML said the number of families who lose their homes will pick up when the Bank of England raises the base rate, which has been frozen at 0.5 per cent since March 2009.
Bob Pannell, chief economist at the CML, said: ‘The benign period of falling arrears and possessions may be coming to an end.’
He added: ‘We remain aware that a sizeable minority of households continue to be subject to financial pressures.’
Mr Pannell said the ‘vast majority’ of families will cope with ‘a slow but certain transition to more normal interest rates’, but the most vulnerable be crippled by a rise.
Source and full story: Daily Mail, 10 December 2013
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