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 rate has been at its lowest level in the history of the Bank of England since April of this year.

Over fifty thousand more homeowners are thought to have fallen behind on their mortgage repayments in the second quarter of this year, even though the base rate dropped to just 0.5 percent.

The first quarter of this year saw over sixty thousand homeowners falling at least three months behind with their mortgage repayments according to figures, which has brought the total number of homeowners that are at least three months behind with their mortgage repayments to over four hundred thousand.

Figures show that there has also been an increase in the amount by which the average mortgage is in arrears. This has increased from an average of £4916 last year to £5225 this year.

The government has put into place a variety of measures to try and help struggling homeowners and bring down the soaring level of repossessions. Officials from the government claim that around three hundred thousand homeowners have already been helped through these schemes and initiatives.

The government is also putting continued pressure on the UK’s banks to be more lenient with homeowners that are struggling to make repayments in the current climate.

One housing charity official expressed concern over the situation stating: “The increase in mortgage arrears, coupled with rising unemployment, shows the risk of a second wave of repossessions is greater than ever. As people fall into arrears it is vital they get advice as early as possible to give them the best chance of keeping their home.”

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