The Council for mortgage lenders is out with their quarterly report for Q1 2014 and it’s good news for struggling UK home owners. Mortgages in arrears stood at 138k or 1.25%, on mortgages with arrears of more than 2.5% of the mortgage balance. This compares with Q4 2013 at 145k and 1.29% and Q1 2013 160k and 1.42%. Arrears fell across all bands. In the worst (highest arrears band) 1 in 400 were behind over 10% of their mortgages.
There was also good news for repossessions which came in at 6400 +4.9% in Q1 from Q3 2013 but are 20% down on Q1 2013.
That’s some good news for the BOE and UK home owners who were hit in the pocket over the crisis with job losses and a tightening up in the mortgage market. However, that’s still a big problem if rates go up in a year or so as many who are are still on lumpy mortgages will be squeezed once again just after getting back on their feet. It’s something the BOE will need to be very aware of and one reason they will want to see some decent wage growth before deciding on rates.
We have the BOE announcement in 10 minutes, which as you know by now is a complete non event. No rate change or additional QE expected, nor any statement, though I still have a slight nervousness from when Carney issued a little statement in his first meeting. It’s kept me on edge ever since.
Over to the Old Lady
I’ve just read it’s Spencer Dale’s final MPC meeting and there’s chatter over whether he may vote for a rate rise. It would go against the 9-0 in no change that’s been happening for a while so keep it in mind on the release. I think it’s a non-event.
