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High rates restrain lending and push up arrears

The Q2 Mortgage Lenders and Administrators statistics from the Bank of England showed that higher rates are limiting lending and making it more difficult than ever for single-income households to get onto the housing ladder. Meanwhile, arrears took a step up as another cohort of borrowers lost the protection of fixed rates. With mortgage rates now higher than when the data was compiled, the drop in lending and increase in arrears will only become more severe in the second half of the year.

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