#ClimateDiary UK’s Nationwide Won’t Lend to Some Homes Over Flood Risk
“The UK’s second biggest mortgage provider has stopped making loans on some homes at risk of flooding, over fears they may become uninsurable — and therefore, unsellable — over the coming years.”
#ClimateCrisis percolating through everything so much already in the UK, like everywhere else - #Harvest, #Insurance and now also #Mortgages. Surely this will become really significant.
#Interestrates on #debt include a substantial element that prices in the risk of default. So a higher interest rate indicates a judgement about your propensity to repay the loan.
April Mortgages are launching a model (from the #Netherlands) that sees the interest rate decline at the loan is repaid (and the risk of default declines).
This also suggests longer #mortgages in the UK have over priced residual risk....to #banks' benefit!
The good news is that areas on #mortgages remain well below the levels reached during the global #financialcrisis 15 years ago, the less good news is the latest #costoflivingcrisis has reversed that trend;
the Q. now is whether this will continue into the new year (as the BoE looks unlikely to reduce #interestrates anytime soon) as those on older fixed rate mortgages have to remortgage in a higher interest rate environment & risk adverse lenders
As #inflation declines its now clear that at its peak, there was a major difference in how it was experienced by the rich & poor;
you'll be unsurprised to see that lower income household were experiencing worse inflation than richer households;
though more recently, the differential has been most pronounced between households with & without #mortgages - those with mortgages experiencing worse inflation in September according to the ONS;
Several thousands of people took to the streets in Lisbon and other major cities across Portugal on Saturday to protest for the constitutional basic right to housing.
Many Portuguese, including the middle class, are being priced out of Portugal’s property market by rising rents, surging home prices and climbing mortgage rates.
States cap #InsurancePremiums, so insurers pull out - but the truth is that homeowners could not afford the premiums it would take for the insurers to stay. (This is why no insurer covers #flooding).
States should also not be the "insurer of last resort" because that burden - the burden that no insurance company will bear - would just fall on the taxpayer.