BOE Says U.K. Borrowers Vulnerable to Increasing Mortgage Rates
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The Bank of England said the number of vulnerable borrowers could double if mortgage interest rates increase and incomes stagnate.
In a scenario where mortgage costs rise by 2.5 percentage points and household incomes are unchanged, the proportion of Britons whose home-loan repayments account for more than 35 percent of income would jump to 16 percent from 8 percent, the central bank said today. If incomes increase by 10 percent, the percentage with such “high” repayments would be 12 percent.