0 £0.00
This item was added to your basket

Dear visitor,
You are viewing 1 of your 1 free articles


We’ve made wider, important changes to our print and online content to enhance the value of exclusive, insightful, discerning content we create every day. Support valuable editorial content by becoming a member of our Credit Club - register for free or choose a paid plan.

Register now or Login

58 percent jump in the value of mortgages written off by UK banks

The value of residential mortgages written off by UK banks and building societies has increased from £77m to £122m in the space of a year, according to accountancy firm Moore Stephens.

The 58 percent rise in write-offs in the year to June 30, 2018, is the first since 2013/14.

 

More than a year since the Bank of England hiked interest rates from their historic low of 0.25 percent, trebling to the current 0.75 percent, there are concerns that the rate rise will have already affected homeowners on floating-rate mortgages and tracker mortgages who are already struggling.

 

Jeremy Willmont, head of restructuring and insolvency at Moore Stephens, said: “The interest rate cycle has turned. The unfortunate collateral damage of interest rate rises is more financial pain among mortgage holders and more personal insolvency.”

 

Data from the Insolvency Service shows a 10 percent rise in the number of individuals going bankrupt last year, increasing to 106,570 in the year to 30 September 2018 up from 96,940 in the previous 12 months.

 

“Increasing mortgage write-offs could suggest the economy is beginning to display signs of slowing down,” Willmont added. “Whatever type of Brexit we end up with, concerns have been raised about the potential impact on the economy. We could see more unemployment and more mortgage repossessions, and the Bank of England has said that a soft Brexit is likely to be followed by more interest rate rises.”

Share on LinkedInShare on TwittereCard
Add New Comment
LoginRegister

LATEST INDUSTRY NEWS STRAIGHT TO YOUR INBOX

READ NEXT

Lowell chief executive James Cornell to step down

Lowell chief executive James Cornell to step down

BrightHouse appoints Thomas Cook’s Mooney as chief executive

BrightHouse appoints Thomas Cook’s Mooney as chief executive

Court orders tribunal to reconsider £14bn Mastercard class action case

Court orders tribunal to reconsider £14bn Mastercard class action case

Upcoming events

Credit Awards 2019

Car Finance Conference

Car Finance Awards

Household Credit Conference

Credit Strategy
LinkedIn page

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace.
@ Copyright Shard Media Group