As mortgage rates reach their highest level in 15 years, many homeowners are fearing the worst.
But there are indications that things aren’t as dire as they appear.
Firstly, people are actually losing their homes – just 610 were repossessed in Q2 2023(1).
Initiatives like the Mortgage Charter are also encouraging lenders to reach payment agreements with their customers.
The UK is also enjoying good job security, in stark contrast to the waves of layoffs seen during previous economic crises, making it less likely that people will lose their jobs.
Furthermore, house prices shot up during the pandemic, so many homeowners have more equity in their home. This may help them get better rates when they remortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage.
1 UK Finance, 2023