Bailey Says BOE 'Very Conscious' of Surging Mortgage Costs' Impact

The transcript discusses the challenges faced by households due to rising mortgage rates and the resilience of banks in handling these issues. It highlights the current mortgage debt service ratio, which is lower than during past financial crises, and the regulatory measures in place to support high loan to income borrowing. The role of banks in providing customer support and avoiding rapid repossessions is emphasized, showcasing the improved robustness of the banking system compared to previous crises.

What is one reason the current mortgage debt service ratio is considered more manageable than in past crises?

• It has not changed since the last recession.

• It is lower than before the financial crisis.

• It is higher than during the financial crisis.

• It is the same as during the early 1990s recession.

How have regulations changed banks' approach to supporting customers?

• Banks are not affected by new regulations.

• Banks have fewer resources to support customers.

• Banks are required to support customers more than before.

• Banks can repossess homes more quickly.

What is a key factor that helps banks support customers during financial difficulties?

• Higher loan losses.

• Increased repossessions.

• A less robust banking system.

• A financially robust banking system.

What was one of the measures taken by banks during COVID-19 to support customers?

• Increasing repossessions.

• Increasing interest rates.

• Offering mortgage holidays.

• Reducing customer support.

What is the expected outcome of a robust banking system in terms of repossessions?

• Increased repossessions.

• No change in repossessions.

• Reduced repossessions.

• Repossessions are not affected.