Mar
21
BOE Says 700,000 Households May Be in `Danger Zone’ on Mortgages
By-
Those spending 30-50% of income on mortgage at risk of arrears
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Blog post looks at range where financial distress might rise
As many as 700,000 U.K. households are at risk of falling in to arrears should interest rates increase, according to a Bank of England blog post.
The threat of being unable to keep up with payments jumps when between 30 percent and 50 percent of pretax income is spent on housing costs, a researcher at the central bank found. Identifying the “danger zone” is crucial to assessing how households may react to changes in their circumstances, the post published Monday said…
BOE Says 700,000 Households May Be in `Danger Zone’ on Mortgages
