($1 = 0.8398 pounds) (Reporting by Huw Jones; Editing by Susan Fenton)
Messaging: huw.jones.thomsonreuters.com@reuters.net)) LONDON, March 10 (Reuters) - Britain's financial
watchdog said on Friday it expects the number of mortgage
borrowers struggling to keep up with payments to rise at a much
slower pace in the next 12 months than previously forecast
because interest rate hikes will be more modest.
The Financial Conduct Authority (FCA) said that in addition
to households already behind on payments, 356,000 mortgage
borrowers could face payment difficulties by the end of June
2024, but that is far fewer than a previous FCA estimate of
570,000.
Those rolling off a fixed rate mortgage deal could end up
paying an additional 340 pounds ($404.84) a month on average,
the FCA said.
The slower increase in numbers is due to markets expecting
the Bank of England not to raise interest rates as high as
previously expected, the FCA said. Easing energy prices and a
resilient jobs market are also helping.
About 200,00 borrowers had a payment shortfall as of June
2022.
The FCA has been putting pressure on banks to help
customers, and lenders proactively contacted customers a total
of 16.5 million times in 2022, with this set to increase to 20.5
million over the next year, it said.
Nikhil Rathi, FCA chief executive, told parliament on
Wednesday that the watchdog had intervened in over 30 firms that
had not treated borrowers in difficulty fairly.
"The leadership of banks understand their reputations are at
stake if they don't handle things appropriately in coming
months," Rathi said.
The FCA also published final guidance to banks on helping
customers in difficulties, including options such as extending
the term of a mortgage or making reduced monthly payments for a
temporary period.
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