‘Tentative signs’ of early mortgage arrears increasing

Elsewhere some mortgage lenders have expressed confidence in the economic outlook. 

A spokesperson for TSB said: “Overall to date, mortgage arrears remain stable and we have not seen any clear signs of stress on the portfolio due to pressures from the external environment and the squeeze on cost of living”.

Last week, a member of the Bank of England’s financial policy committee, Dame Colette Bowe, reiterated the BoE’s position that the current shock being experienced by the financial system does not pose the same threat as previous shocks.

However, Dame Bowe acknowledged the pressure the rise in living costs and interest rates will put on UK households over the coming months and the impact this may have on borrower resilience as borrowers struggle with bills.