Over the next six months, many of the borrowers who have benefitted most from the fall in interest rates will see their mortgage payments increase. At the margins, this is likely to boost mortgage arrears, but we doubt that the impact will be large. Indeed, while monetary policy remains on hold, the extent to which unemployment rises further will hold the key to the arrears outlook.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services