It also pushes around 3 per cent into negative equity.
Therefore, the assumed 100 basis point increase in mortgage spreads in the scenario leads to an average increase in annual repayments for these mortgagors of just over £2,000 by the time they refinance, over and above the impact from the increase in swap-rates.
Article continues after advert
tom.dunstan@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
Page 2 of 2
