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Economics

Prediction: Fixed-rate mortgage expiry is set to trigger a surge in lender claims

Economics
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Prediction

Lender policy claims are expected to rise as fixed-rate mortgage deals arranged before late 2021 begin to expire en masse by 2026. Borrowers moving to higher interest rates may struggle with repayments, leading to increased arrears and repossessions. This will likely drive more claims against lender policies, once title defects or valuation issues are revealed. Insurers should prepare for elevated notification volumes.

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