What could a recession mean for mortgages? ‘Fixed-rate customers could struggle’


Products You May Like

Ms Spencer said: “These customers may be forced to bite the bullet and remortgage sooner rather than later.”

But those with variable rate mortgages will be “seeing their payments increase immediately”, with even the smallest change to interest rates “triggering another rise in their biggest monthly outgoing.”

There’s understandably more concern for those on variable rate mortgages, who will see a rise in line with interest rates.

Sarah Thompson, Managing Director, LRG: “[Variable mortgage rates] will have been stress tested by brokers who would lend based on how an interest rate rise will affect someone’s ability to repay.

“Homeowners shouldn’t worry about an interest rate that is out of their control.

“It will rise, but it isn’t and won’t come close to the historic rises of decades ago. A reassessment of outgoings, particularly with the cost of everything else rising will be a good safety measure in the face of such insecurity.”

Is there a way to mitigate hard impact?

As damning as it might currently sound, there are measures you can take to stay afloat.

Ms Spencer said: “Lenders do have provisions in place to help borrowers cope with economic struggles including job losses or reduced income. For example, during the pandemic, lenders offered all customers the option of a payment holiday, regardless of their financial situation.

“Lenders are no longer required to stress-test borrowers’ finances, however, lenders still hold the risk and so I suspect many will still be stress testing their borrowers.

Products You May Like

Articles You May Like

The Final Cut Reviews; Deet n Bax Save th’ World – A Stoner Comedy Starring Jason Mewes, Craig Michaelson and Weston Cage.
Deet n Bax Save the World Movie Starring Jason Mewes Premier on 4/20/2015 in Portland
Feature Film “Deet n Bax Save the World” Starring Jason Mewes to be Released on 4/20/2015 ”Deet n Bax Save the World” an Action Stoner Comedy starring Jason Mewes produced by TruEarth Entertainment.
TruEarth Entertainment to Deliver First Feature Film Starring Jason Mewes
Deet n Bax Save the World Movie – Sex, Guns & Weed!
Deet n Bax Save the World wrapped on November 4th!
Deet n Bax Save the World resumes filming this Monday in Portland Oregon!
Deet and Bax Save The World Movie Resumes Filming Soon!

Leave a Reply

Your email address will not be published. Required fields are marked *