Subscribe to The Money StopNews Feed

Browse > Home / News, News-Mortgages / Mortgage arrears to rocket

Mortgage arrears to rocket

January 12, 2009 by admin  
Filed under News, News-Mortgages

Leave a Comment

According to recent reports the level of in the UK is set to rocket, with some industry reports claiming that there could be a huge rise in the number of people in arrears in 2009 despite the aggressive base interest rate cuts that have been applied by the Bank of England. In fact, around half a million households are set to fall behind with mortgage repayments in the coming year according to the reports, which come from the Council of Mortgage Lenders.

The expected number of households falling into arrears for the whole of this year was around 210,000, so next year’s figure is already way over twice this year’s. Officials from the CML have blamed rising unemployment figures amongst other factors for the rise in the level of arrears, stating that around 75,000 households could face repossession as a result of falling behind with their mortgage repayments.

Predicting the situation would be ‘very tough’ next year when it came to homeowners keeping on top of arrears, the CML said: “The economic recession means unemployment is rising sharply, and this will inevitably impact on the number of households facing mortgage arrears.”

Lending levels have also been highlighted as a problem, with the CML stating: “Recent glimmers of light in terms of government intervention to improve conditions to support new lending are helpful, but more will be needed.”

An official from the Association of Mortgage Intermediaries stated: “If the outcomes are as dire as the CML’s predictions then the industry and consumers in particular are in for a tough year. It is now essential that the Government intervenes swiftly to implement Sir James Crosby’s recommendations for the mortgage finance markets.”

Tags: lending, year's figure, mortgage, top, council of mortgage lenders

Tags:

Related Entries

  • Officials offer advice on mortgage arrears
    • A recent report has shown that many homeowners in Scotland are struggling to keep on top of their mortgage repayments, and figures from the Financial Services Authority have shown that at the end of the
  • Mortgage arrears up by 30 percent
    • Over the past year the level of mortgage arrears amongst homeowners in the UK has increased by around 30 percent according to recent reports, and this is despite the fact that the UK base interest
  • Rising mortgage arrears in Scotland
    • Recently released figures have shown that the level of mortgage arrears amongst homeowners in Scotland has been rising. An increasing number of homeowners are struggling to keep on top of their mortgage repayments. The Financial
  • Bradford & Bingley: Arrears on the up
    • UK lender Bradford & Bingley has said that mortgage arrears are continuing to rise as more borrowers are facing difficulties in repaying their loans.Britain's ninth-biggest listed bank said that it expect increased payment strain and
  • Lenders issued with deadline to prove fairness
    • The UK's financial regulator, the Financial Service Authority, has been contacting lenders that deal with home loans, and has advised them that they have a deadline by which they must prove that they are exercising
  • CML releases repossession figures
    • The Council of Mortgage Lenders released figures last week that showed the level of repossessions in the UK had increased by 50% in the first three months of this year compared to the first quarter
  • Rental arrears still on the rise
    • It has been claimed by a property firm that the level of rent arrears amongst private tenants has increased again. According to LSL rental arrears for the month of December increased compared to November, rising
  • Northern Rock cuts its repossession numbers
    • The nationalized mortgage lender Northern Rock has recently announced that it has managed to cut its mortgage repossession numbers as a result of the housing boom seen over the summer period. The bank has also

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!