Cut interest rates to give homeowners a much-needed boost, Bank of England told
Propertymark has called on the Bank of England to play its part in helping homeowners faced with higher mortgage costs by slashing interest rates as soon as practically possible.
The call follows the release of the latest statistics yesterday revealing that the number of mortgage arrears continues to rise.
According to UK Finance, approximately 93,680 homeowner mortgages were in arrears of 2.5% or more of the outstanding balance in the fourth quarter of 2023.
This represents a 7% rise in contrast to the previous quarter and 25% more than the fourth quarter of 2022.
Additionally, 30,750 mortgages were in the most alarming arrears band. This was a 4% jump in contrast to the previous quarter and 8% more compared with the corresponding period a year earlier.
Nathan Emerson, CEO at Propertymark, said: “If the Bank of England meets its own inflation target of two per cent earlier than they planned, then they should look to reduce interest rates as soon as they can. Mortgage affordability is a critical issue at the moment, and Propertymark’s own Housing Insight Report found that many agents are selling below the initial asking price for homes due to mortgages becoming increasingly expensive as a result of higher interest rates and inflation.
“Also, many landlords on variable or tracked rate mortgages are now struggling with rising mortgage costs and increased taxes against a backdrop of increasing legislation, ultimately making renting more expensive and forcing some landlords out of the sector completely.”
*source property industry eye