Rising mortgage arrears in Scotland
March 9, 2009 by admin
Filed under News, News-Mortgages
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 Services Authority has recently released figures that show that around 340,000 homeowners in Scotland were in arrears at the end of the third quarter of last year. This figure was an increase of 24 percent compared to the third quarter of 2007.
There is concern that the level of arrears amongst Scottish homeowners could continue to increase over the course of this year, with expectation of a drop in income amongst many homeowners and increasing fears over job losses as a result of the ongoing recession. One official from the housing charity Shelter said that it was important for struggling homeowners to contact their lenders as soon as possible if they were struggling to meet their repayments.
He went on to state that if borrowers contact their lenders or take advice from a debt expert before things get out of hand, much of the misery and problem relating to mortgage arrears can be avoided.
He said: “Seeking advice early could be the key to avoiding a crisis if you are facing eviction or struggling to pay your mortgage. The earlier you take action, the better the chance of staying in your home. No-one with financial problems should bury their head in the sand.”
Although many homeowners may be wary of contacting their lenders with regards to payment problems, many will be more sympathetic in the current financial climate and may be able to look at extending the term of the loan or modifying the mortgage in some other way.
Tags: housing, debt expert, scotland mortgages, mortgage arrears, Mortgages, Arrears, homeowners, result