The FCA today published Occasional Paper No. 57 on mortgage market disruptions. The paper uses data to document the trends associated with COVID-19 and compares them to the financial crisis of 2007-09.
The summary includes the following details:
- COVID-19 disruptions were larger and more abrupt but recovery has, so far, been faster.
- 90% LTV products were impacted the most.
- 2007-09 saw a more gradual persistent decline with an 18 months period before recovery commenced.
- Equity release products have been hugely affected.
- By the end Q2 this year, 1 in 5 mortgages were benefitting from payment deferrals while repossession orders had virtually disappeared following the temporary ban introduced by the FCA in March 2020.