The share of mortgages advanced in Q4 2019 with LTV ratios exceeding 90% is on the rise.
Mark Pilling, corporate sales managing director at Spicerhaart, said: “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 ratios – although single-income borrowers with an LTI ratio above four 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.”