According to recent figures that have been released by the Council of Mortgage Lenders the number of mortgage defaults in the UK has been rising, and have hit a twelve year high.

Soaring unemployment levels and the effects of the recession are continuing to take their toll on homeowners, leaving many unable to meet their mortgage repayments each month. To make matters worse some lenders are imposing crippling fees onto the accounts of those that have fallen into arrears.

Some economists and politicians have now said that these fees and charges imposed by banks are unfair given the current climate and the fact that the homeowner is already struggling.

It is thought that some banks are charging around £35 just for sending out a letter or making a phone call to the mortgage holder and around £150 for a visit from a debt counsellor. These crippling fees are simply adding to the financial strain that the homeowner is experiencing and putting them even further behind with repayments.

The Shadow Housing Minister, Grant Schapps, commented on how unfair the fees were, particularly given that many of the banks involved had themselves had to be rescued with taxpayer’s money.

He said: “With more borrowers in arrears, this is not the time for banks – many of which have enjoyed direct support from the taxpayer – to cash in on homeowners struggling to keep a roof over their heads.”

Another official commented on the situation stating: “Steady interest rate cuts have clearly gone some way in helping struggling households keep up with their mortgage repayments but conditions in the housing and mortgage markets still remain challenging. The deteriorating labour market will undoubtedly have a direct effect on the number of households in arrears in the coming months.”

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