Avoiding Repossessions
According to figures released by Nationwide, an increasing number of homeowners are falling behind on mortgage payments as monthly bills continue to rise. However, the data also reveals that customers are seeking support from the Government's mortgage charter in order to avoid repossession.
Extension of Terms and Repayment Holidays
So far, only 5,000 homeowners have taken up interest-only repayments, but Nationwide expects more customers to request an extension of terms and repayment holidays in the future. Despite the rise in arrears, Nationwide's chief executive, Debbie Crosbie, reassured homeowners that the situation is not as severe as it was during the 2008 financial crisis.
Increasing Impairment Provision
Nationwide has increased its impairment provision on mortgages to £305 million, up from £280 million. However, Crosbie believes that the Bank of England's base rate is close to its peak, which has led to hopes that mortgage rates will start to decrease. Nationwide's rate is already below five per cent.
Positive Signs
Nationwide, which has committed to keeping its branches open until at least 2026, has seen a two per cent increase in profits to £989 million. Crosbie also noted that there are signs that cost of living pressures are starting to ease. However, she warned that the previous rate rises by the Bank of England may still impact homeowners when they have to renew their mortgage.
Side-Hustles on the Rise
In other news, the Direct Selling Association has reported a significant increase in monthly earnings from direct selling, with Brits earning an average of £833 in the last year. Many individuals are using social media platforms to directly sell goods to their followers, providing a boost to their incomes during the ongoing cost-of-living crisis.
Barclays Considers Buying Tesco Bank
Barclays is considering making an offer to buy Tesco Bank, which has recently been put up for sale. As supermarkets focus on core food retailing, Tesco has asked potential buyers to submit their offers by the end of the week. Barclays is among the interested parties, according to Reuters. Tesco launched its financial services arm in 1997.
