Aitken said despite the favourable economic climate and the lending and broker trend toward affordability, overall debt levels are still on the increase.
“Bank of England figures show that the rate of growth of consumer borrowing is slowing, but overall debt is still rising, and the proportion of secured lending within the total has risen sharply over the past five years,” he said. “It would be unwise to forget that mortgages are secured loans, with the ultimate sanction of possession.”
The Council of Mortgage Lender’s (CML) 2003 annual report revealed a 36 per cent year-on-year fall in repossession figures and showed arrears at their lowest levels for 20 years at 7,630 last year.
However, Brad Baker, head of communications at MCCB, said:
Intermediaries are responsible for a thorough factfind around affordability. Brokers should take into account all on-going payments, including on-going credit-card repayments, because many customers are unaware that lenders use intricate credit-scoring systems.”
