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

Future Retirement Success

Business

Households struggling with mortgages ‘might reach 2008 peak next year’

by October 12, 2022
October 12, 2022
Households struggling with mortgages ‘might reach 2008 peak next year’

The proportion of households struggling to make their mortgage payments is expected to increase to its pre-financial crisis peak by the end of next year, the Bank of England has warned.

The Bank’s Financial Policy Committee (FPC) said households with high cost of living-adjusted mortgage debt-servicing ratios will soar if interest rates increase in line with what the market expects.

The category measures those who spend more than 70% of their take-home pay on mortgages and other essentials.

These households will struggle to meet their payments and will have to cut spending, and could default on their loans.

“Assuming rates follow this market-implied path, the share of households with high cost of living-adjusted mortgage debt-servicing ratios would increase by end-2023 to around the peak levels reached ahead of the global financial crisis (GFC),” the Bank said.

“However, households are in a stronger position than in the run-up to the GFC, so UK banks are less exposed to household vulnerabilities.”

There are fewer households with mortgages than at the time of the GFC and the ratio of debt to income of British households is well below where it peaked before the 2008 crash.

“Nevertheless, it will be challenging for some households to manage the projected rises in the cost of essentials alongside higher interest rates,” the Bank said.

It came as the Bank warned that the outlook for the global economy has deteriorated significantly in recent months.

The Bank said recent problems in the market for UK Government debt had spilled over and were impacting global markets.

“The global economic outlook has continued to deteriorate significantly, and by more than had been expected, while geopolitical risks have remained heightened since July,” the FPC said.

It added that interest rate increases will also push up costs for companies.

Read more:
Households struggling with mortgages ‘might reach 2008 peak next year’

0
FacebookTwitterGoogle +Pinterest
previous post
Jury Reaches Verdict – Orders Alex Jones to Pay $965 Million Dollars to Sandy Hook Victims
next post
August’s £800m fall in EU trade adds to the UK’s economic woes

You may also like

Hair Transplant in Turkey and the Law: What...

December 11, 2024

UK car production declines for eighth consecutive month...

November 28, 2024

Rent rises slow, offering hope to beleaguered tenants

December 12, 2024

From Burnout to Balance: A Lawyer’s Journey of...

August 12, 2024

Number of firms fined for deliberate corporation tax...

August 22, 2022

Conservatives Pledge £730m to Tackle ‘Sick Note Culture’

June 10, 2024

Impact of Increasing Interest Rates on the Rental...

August 15, 2024

Private Christian Schools to sue government over VAT...

October 9, 2024

DBT gives £230k injection to drive digital transformation...

December 12, 2024

Sainsbury’s launches EV charging business to give ‘smart...

January 12, 2024

    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

    • Trump ally stands firm against ‘big, beautiful bill’ despite pressure: ‘It’ll completely backfire’

      June 8, 2025
    • Rubio condemns assassination attempt on Colombian presidential candidate Miguel Uribe

      June 8, 2025
    • Obama WH physician says Biden doc should have performed cognitive test

      June 8, 2025
    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • 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

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,571)
    • 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