How quickly could interest rate cuts impact the industry?

“I hope that in 12 months’ time we will be starting to feel the benefits of lower rates,” Milburn (pictured) told Mortgage Introducer.  “The time horizon for these cuts continues to be pushed out as inflation remains stickier than expected, but we are hopeful that come mid-2025 we should be on the right path. This should act as a slow pressure release for the industry, lifting financial stress from borrowers, reducing the rate of arrears and introducing a greater level of stability in the market.”

How can politicians support those in financial difficulty?

In Milburn’s view, governments hold a huge amount of power to communicate important messages to the public around financial issues.

“An important area in which politicians of all stripes can support the mortgage industry and its borrowers is in helping the public to understand what they can do about their mortgage payments if they fall into financial distress,” he said. “No matter how bad the situation seems, there is always advice and there is always a solution, but very often people don’t know where to turn.”

Pepper Advantage works with financial institutions as a specialist mortgage data and service provider, and seeks to support those in trouble.

“As a business, we make a significant effort to reach these borrowers,” said Milburn. “A mortgage distress information campaign that is driven by the government would be a huge help to individuals, letting them know where to go if they’re experiences challenges, and would also help the mortgage industry identify and manage distressed debt early on.”

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button


Get our latest downloads and information first. Complete the form below to subscribe to our weekly newsletter.

100% secure your website.