Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

UK mortgage holders will see payments rise to 30 per cent of their income, Barclays boss warns

by May 24, 2023
May 24, 2023
UK mortgage holders will see payments rise to 30 per cent of their income, Barclays boss warns

UK mortgage holders will see their monthly payments jump to up to 30% of their income from about 20% over the past few decades, the boss of Barclays has said.

CS Venkatakrishnan, known as Venkat, said the sharp rise in interest rates will lead to a “huge income shock” by the end of next year.

He said during an interview at the Wall Street Journal CEO Council Summit: “By our assumptions, for the median family income with the median mortgage, what they have paid as their mortgage or rental payments in the last two decades – the nineties to 2020 – was about 20 per cent of their income.

“That is going to be about 28 per cent to 30 per cent of their income. So there is a huge income shock.

“Obviously it affects consumption, and that is before you even bring in the other affects of inflation being food and energy, and basic goods and services.

“I think therefore what you will see ultimately is a slowdown in consumption – we are seeing it already.”

Barclays’ group chief executive, Venkat, has said the recent banking turmoil could result in less lending and more mergers between banks.

He said: “I think the phase of initial discovery is over, and I think there is going to be a longer term discovery and adjustment.

“The three banks that failed – Signature Bank, Silicon Valley Bank, and First Republic – were the most obvious ones when people started look at asset pricing plans.”

But he said many other banks with smaller asset problems could start looking to sell portfolios and “heal themselves”.

“What that will probably mean is less lending”, he said.

Asked whether the recent US bank failure could be an opportunity for big banks to get bigger, Venkat said: “I think you will see more banks getting interested in some sort of merger.”

Read more:
UK mortgage holders will see payments rise to 30 per cent of their income, Barclays boss warns

0
FacebookTwitterGoogle +Pinterest
previous post
How businesses can attract staff longevity amid an ever-changing landscape
next post
Allstar – making fuel, electric vehicle and business payments simple

You may also like

First Electric Coach Service to be Trialled in...

February 27, 2024

What does the budget mean for the ever-evolving...

April 2, 2024

Tech leaders debate AI skills shortage in Parliament 

February 20, 2024

First-time homeownership slips further out of reach without...

February 19, 2025

Hundreds of Married Women Could Receive State Pension...

August 9, 2023

Rachel Reeves to lead Davos 2025 delegation in...

January 8, 2025

Why is the full set of veneers becoming...

April 19, 2023

MPs Declare Rail Subsidies ‘Unsustainable’ Amidst Stalled Reforms

May 28, 2024

Why I Am Backing Kamala Harris in the...

August 29, 2024

Liz Truss warned corporation tax cuts have not...

September 20, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025
    • Tech ETFs are Leading Since April, but Another Group is Leading YTD

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,567)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved