NCI Resources believe that the levels of mortgage arrears are set to continue rising. They believe that the increase is due to five rises in interest rates, with borrowers coming to the end of fixed-rate deals, and having to replace them at higher rates, which overstretches their finances. The company consider that these problems have been compounded because lenders have tightened the rules on remortgages so that borrowers in financial trouble cannot use this as a way out of debt.
Our view
A message that we all know. Higher interest rates and overborrowing = arrears.