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Homeowners are reducing mortgage debt by making, or maintaining, higher repayments using the extra cash generated by lower mortgage rates.
requesting longer working hours, for example, in order to afford the higher repayments, unless their wages had also gone up.
You couldn't miss the deprivation or the anxiety she suffered when her creditors chased her for higher repayments she couldn't afford.
Students and graduates who have taken out student loans since 2012 will face higher repayments after the £21,000 income threshold at which borrowings must be paid back was frozen for five years.
Research group Mintel said 5.5 million of the UK's 16.5 million borrowers could struggle to get a new loan, or face higher repayments when their current deal came to an end and they tried to remortgage.
The report recommends that the regulator, the Financial Conduct Authority, should require lenders to undertake a financial health check of all vulnerable customers to judge how they would cope with higher repayments.
Similar(47)
Spandana seeks to earn a profit through higher repayment rates.
Stephan Vermut at Prosper reckons that the social aspect to the site encourages higher repayment rates.
The paper says that loans for fees and for living expenses could be split, with a higher repayment threshold for the fees loans.
Studies have shown that these loan groups have been able to reach higher repayment rates than banks with credit scoring technology.
One solution would be to negotiate with each state's Medicaid office for higher repayment rates – the same thing healthcare associations do across the country.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com