Mortgage borrowers will be reassured by a new report from the International Monetary Fund (IMF) that backs the Bank of England’s decision to keep interest rates low, despite rising inflation. According to the IMF, UK inflation will remain above 4% for most of 2011 but return to around 2% towards the end of next year, [...]
lender forbearance
Lenders warned on interest-only mortgages
Lender forbearance over mortgage arrears could result in repossessed homeowners facing greater losses, the Financial Services Authority (FSA) has warned. The regulator is particularly concerned that where a borrower in financial difficulties has their mortgage converted from repayment to interest only, a repayment strategy is in place. It also wants lenders to check that both [...]
Lender forbearance disguises scale of mortgage arrears
The risks faced by the UK’s mortgage lenders have been highlighted by the first Prudential Risk Outlook (PRO) to be published by the Financial Services Authority (FSA). According to the FSA, the lower arrears and repossessions seen during the current downturn, compared with the previous recession, are down to falling mortgage interest rates and lower [...]
