Mark Pilling, Spicerhaart Corporate Sales managing director, says: “The Q4 arrears figures from the Bank of England are broadly positive, showing another fall on the back of previous quarters.
“There was also a small drop in high LTV mortgages and high loan-to-income (LTI) ratios – although single-income borrowers with an LTI ratio above 4 actually rose slightly, which could be a cause for concern.
“With the coronavirus Covid-19 already beginning to cause real disruption to businesses and people’s livelihoods, it remains important that lenders have a flexible attitude and continue to seek outcomes that are right for customers. There is a strong likelihood that arrears will rise as a result of the virus, and the measures imposed to slow down its spread. Lenders need to be ready for a situation where people are facing real financial difficulties through no fault of their own.”