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Coronavirus set to push up mortgage arrears – Fitch Ratings

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  • 16/03/2020
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Coronavirus set to push up mortgage arrears – Fitch Ratings
Mortgage arrears are predicted to rise following the outbreak of the coronavirus.

 

Self-employed borrowers, workers on temporary or flexible contracts and those who work for small businesses are set to see a drop in income, credit ratings agency Fitch Ratings has said in an asset risk report.

Payment holidays, loan modifications and other measures are likely to increase, which will help ward off defaults, according to the forecast.

Home sales could also fall in larger towns and cities, putting pressure on house prices, Fitch said.

However, low mortgage rates are expected to support buyer affordability.

The predictions related to global Residential Mortgage Backed Securities (RMBS).

It comes after a number of lenders including TSB and RBS and NatWest indicated customers affected by coronavirus would be offered payment holidays of up to three months on mortgage repayments.

Some house price surveys have also indicated that coronavirus is affecting sentiment.

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