UK lenders have experienced the highest surge in mortgage defaults in over a decade

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According to recent reports, lenders in the United Kingdom have experienced the most significant surge in mortgage defaults in over a decade. Over the past three months, there has been a noticeable increase in the number of borrowers who are struggling to meet their mortgage payment obligations, marking the highest level since mid-2009.


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via MSN:

Losses and default rates on mortgages have increased in the past few months and are expected to rise further in the months ahead, according to a Bank of England survey of lenders.

Default rates for non-mortgage lending are also expected to increase slightly by the end of August, the Bank’s credit conditions survey found.

Corporate lending default rates are also expected to increase for small businesses in the months ahead, while remaining unchanged for medium and large businesses.

Mortgage rates have jumped in recent months amid expectations that interest rates will stay higher for longer, to combat stubbornly high inflation.

According to figures released by Moneyfactscompare.co.uk on Thursday, the average two-year, fixed-rate mortgage for homeowners across all deposit sizes is 6.75%, while the average five-year fix on offer has a rate of 6.27%.


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