FT News Briefing The UK’s ‘mortgage bomb’
Jun 23, 2023
The podcast dives into the UK’s mortgage crisis, spotlighting the rising interest rates and their implications for homeowners. It draws parallels to past financial downturns while examining strategies banks might use to assist borrowers. Additionally, it tackles Germany's commitment to importing more US liquefied natural gas, marking a shift away from Russian supplies. The conversation shifts to Sierra Leone, where upcoming elections could reshape the political landscape amidst economic challenges, highlighting President Bio's re-election bid and his challenger.
AI Snips
Chapters
Transcript
Episode notes
UK Mortgage System
- UK mortgages are dominated by fixed-rate terms, unlike many other countries.
- Borrowers enjoyed cheap mortgages due to low-interest rates, but this is changing.
Repossession Predictions
- Experts predict repossessions will rise but not as drastically as in 2008-2009.
- Fixed-rate mortgages and increased housing equity provide a buffer against rising rates.
Easing Mortgage Pain
- Banks can offer switches to interest-only loans to reduce monthly payments.
- Extending mortgage terms also lowers monthly costs, but increases overall interest paid.