Steve McNicholas comments on the UK Finance’s mortgage arrears and possessions statistics

09 November 2017

Steve McnicholasCommenting on UK Finance’s mortgage arrears and possessions stats, Steve McNicholas, Managing Director – Credit and Marketing Data, Callcredit Information Group, said: “It is encouraging to see that mortgage arrears have continued to fall across the UK in Q3. This is good news for consumers, lenders and the UK economy as a whole.

“This trend is reflective of a combination of low interest rates and a better understanding of credit report data and affordability assessment by lenders. However, with the number of property possessions increasing and in light of the recent interest rate rise, lenders mustn’t become complacent and should look to further enhance the information used to make lending decisions. Particularly, more in-depth affordability data, enriched with transaction level data, which may be made more readily available once Open Banking is realised. Key to this is looking at transaction categorisation services combined with proprietary credit analytics that enable lenders to make smarter underwriting decisions.

“If we are to maintain this positive trend, continuously assessing a borrower’s affordability is key - especially as mortgage rates begin to rise. Affordability also needs to be viewed through the lens of increased levels of unsecured consumer lending, it is about understanding the whole picture not just one element.”

Back