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Mortgage and landlord possession statistics: Experts share their thoughts with IFA Magazine

Photo by Towfiqu barbhuiya on Unsplash.

Following on from the Mortgage and landlord possession statistics: January to March 2022, published this morning, three mortgage experts share their thoughts:

Ross Boyd, founder of the always-on mortgage comparison platform, Dashly.com“Though mortgage and landlords possession actions are down on 2019, pre-pandemic, the 100% increase compared to the first quarter of 2021 is a trend that is worth monitoring. It could be a natural readjustment following the passing of the Coronavirus Act in March 2020. Fortunately, many homeowners are on exceptionally low fixed rates and that will support their ability to maintain payments. It’s what happens when they come to the end of their fixed rates that matters now. Many will be in for a serious rate shock if rates continue to rise, something that will be exacerbated if inflation is still well above target.”

Joshua Gerstler, chartered financial planner at Borehamwood-based The Orchard Practice“We are not yet seeing borrowers missing mortgage payments. This is because most of them are on fixed rate mortgages and their payments have not changed. However, we are likely to see an increase in missed payments once people reach the end of their fixed rate deals and find that their monthly repayments are much higher due to the increase in interest rates.”

Scott Taylor-Barr of Shropshire-based broker, Carl Summers Financial Services: “With rising interest rates and inflation doing damage to people’s incomes, we are bound to see an uptick in repossessions somewhere along the line. My advice to anyone that finds themselves struggling is always the same, namely speak to your lender. The earlier you can get the lender’s assistance, the easier and less stressful the whole experience will be. Lenders have entire teams set up to help support you with payments, as long as you are prepared to work with them and prioritise your mortgage payments. Expect to be asked to cancel non-essentials like Sky TV and Amazon, as well as getting in touch with other lenders you may have, such as car finance, personal loans and credit card providers to see what they can do to reduce your repayments whilst you get yourself back on an even keel. Please remember that no wants to come and repossess your house, that is the very last thing a lender wants to do, they would rather work with you to find a way to help you pay them back, so take them up on that offer of help.” 

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