It’s interesting to hear the Association of Mortgage Intermediaries urging the mortgage market to start preparing for a rise in arrears, due to the fact that the number of borrowers falling behind on loan repayments in unregulated markets is climbing.
Ascent is well prepared for any sudden rise in volumes of work from our clients if this prediction comes true. We’ve recently appointed a resource and capacity planning manager, and are now anticipating our recruitment needs ahead of time. We’re very confident in our ability to scale quickly if our clients need us to.
The Association of Mortgage Intermediaries believes mortgage arrears "present a significant downside risk over the coming years" and has urged lenders to begin preparations. In its quarterly bulletin, the AMI said arrears would begin to rise due to changing employment dynamics, an ageing society increasingly reliant on work and debt and a steadily rising Bank Rate. The AMI noted that the incidence of arrears on short-term finance loans funded by peer-to-peer and other bridging lenders has already risen and the number of borrowers falling behind on loan repayments, albeit in unregulated markets, is steadily climbing.
