Last year saw mortgage arrears rise by over 30 percent
Recently released information has shown that over the course of 2008 the level of mortgage arrears in the UK increased by over 30 percent, as more and more homeowners struggled to keep on top of repayments in the increasingly difficult financial climate.
The data, which has come from the UK’s financial regulator, the Financial Services Authority, has shown that mortgage arrears in the UK increased by 31 percent over the course of last year.
The figures show that at the end of last year there were 377,000 mortgage accounts that had fallen into arrears by at least 1.5 percent of the loan balance, which equated to approximately three months’ worth of arrears. The figures show that based on this data around 3.4 percent of all mortgages are now held by those that are in trouble with mortgage arrears, and the value of these loans comes to over £40 billion.
Officials from the FSA have said that for many people who bought their homes before the house price bubble burst in 2007 the ability to keep up with mortgage repayments was becoming more difficult. This is thought to be due to a number of factors, such as the recession, falling income levels, and rising unemployment levels.
The FSA said: “With borrowers increasingly struggling to clear their arrears, the total number of loan accounts in arrears has been steadily increasing since early 2007.”
The regulator also suggested that house price falls in the UK were speeding up, and this could result in a rising number of homeowners being plunged into negative equity, where their mortgage balance ends up being larger than the property value.
Related Posts
Unfair charges result in fine for GMAC-RFC
Unfair mortgage charges have resulted in a fine for a UK mortgage lender according to a recent report. GMAC-RFC has been fined nearly three million pounds by the UK’s financial regulator, the Financial Services Authority. »
Fairness deadline issued to lenders
Lenders who deal with home loans have been given a fairness deadline, and have been told that they could face hefty fines if they fail to treat customers fairly when it comes to dealing with arrears on home loans. Lenders have been told that they must prove that customers that are in arrears or are facing repossession are being treated fairly and that they have to provide this proof by 31st of January. »
92% increase in home repossessions in one year
During the third quarter of last year the number of people that were losing their homes nearly doubled, according to recent reports. »
13 percent drop in UK repossessions
Recently released figures have shown that in the final three months of last the number of properties in the UK falling into repossession fell significantly, as did the levels of mortgage arrears in the UK. »
Keeping Your Mortgage Payments Up to Date
With interest rates starting to rise, many homeowners have gotten used to low monthly payments on their mortgage. »