More homeowners are falling behind on mortgages as monthly bills soar, Nationwide warns
MORE homeowners are falling behind on mortgages as monthly bills soar, according to figures by Nationwide.
It said customers were taking up support from the Government’s mortgage charter to avoid a spike in repossessions.
Only 5,000 have taken up interest-only repayments so far, but Nationwide said it expected more to request an extension of terms and repayment holidays.
Nationwide chief executive Debbie Crosbie said arrears will continue to rise but “it will be nothing as severe as we would have thought this time last year”.
They are still far below the levels during the 2008 financial crisis.
The building society increased its impairment provision on mortgages to £305million, from £280million.
Ms Crosbie said it believes the Bank of England’s base rate “is at or close to its peak”, fuelling hopes mortgages will start to come down.
Nationwide’s is already below five per cent.
Nationwide, which has more branches than any other bank or lender after committing to keep them open until at least 2026, has grown profits by two per cent to £989million.
Ms Crosbie sees “signs that cost of living pressures are starting to ease”.
However she warned that the BoE’s previous rate rises could be felt when people have to renew.
Tout of cash
BRITS’ side-hustles are now serious business with monthly earnings from direct selling up by three quarters to £833 in the last year.
The Direct Selling Association said many people were using social media to tout goods directly to their followers to boost incomes during the cost-of-living crisis.
Tesco sell-off
BARCLAYS is considering buying Tesco Bank, which has been put up for sale as supermarkets get back to the basics of food retailing.
Tesco has asked bidders to make offers by the end of the week and Barclays has made an offer, according to Reuters.
The retailer launched its financial services arm in 1997.