Croydon leads the UK as high-risk mortgage hotspot

Out of the UK’s 2,578 postal code areas, Croydon had the most newly-approved risky mortgages – a total of 463 compared to a U.K. average of about 39 risky mortgages taken out per postal code area. Specifically, Bank of England guidelines say that a mortgage is considered high risk if the borrower borrowers more than 4.5 times their income. The number of risky mortgages in the U.K. rose by 15 percent last year, with a total of over 1,000 high risk mortgages currently in effect throughout the U.K.

Key Takeaways:

  • In the UK housing market, Croyden leads the pack in high-risk mortgages.
  • Once considered an undesirable area, Croyden’s economic turnaround falls in line with its mortgage issues.
  • In all, the amount of high risk mortgages in the UK rose by 15% in the past year.

“According to Bank of England guidance, mortgages are considered “high-risk” if they are lent at 4.5 times or more of the applicant’s salary.”

Read more: https://www.londonlovesbusiness.com/business-news/business/croydon-leads-the-uk-as-high-risk-mortgage-hotspot/22265.article

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