Mortgage arrears on the rise
Mortgage arrears on the rise
Wednesday 6th August 2008
According to the financial watchdog, around 54,000 borrowers fell behind with repayments on their home loans during the first quarter.
This represents a rise of 15 per cent compared with the same period last year and brought the total number of homeowners in arrears to 302,000.
Repossessions were also up during the quarter by 40 per cent - prompting strong criticism of lenders from debt charities and consumer groups.
The trend has been attributed to mortgage providers hiking rates on their loans as well the additional pressure on household finances from soaring energy and food bills.
In response to its findings, the FSA is now considering taking legal action against lenders who fail to treat struggling borrowers sympathetically.
News of the report's findings come in the wake of predictions from the Council of Mortgage Lenders that the number of repossessions in the UK could hit 45,000 by the end of the year.
Debt management companies are in turn expecting a rise in demand for debt advice.
Let Debt1 help solve your debt problems
Related News
Northern Rock customers 'struggling with mortgage debt' - 05/08/08
The number of Northern Rock customers who have fallen behind with their mortgage debt repayments has increased dramatically over the last year, it has been revealed
The number of Northern Rock customers who have fallen behind with their mortgage debt repayments has increased dramatically over the last year, it has been revealed
Debt worries force students to take on jobs - 04/08/08
Increasing numbers of students are being forced to take on part-time work as they seek to limit their student debt and fund their studies, it has been revealed
Increasing numbers of students are being forced to take on part-time work as they seek to limit their student debt and fund their studies, it has been revealed
Banks offering consumers higher credit limits - 01/08/08
Banks are continuing to offer Britons further credit card debt, despite mounting signs that the UK's debt problem is spiralling
Banks are continuing to offer Britons further credit card debt, despite mounting signs that the UK's debt problem is spiralling
Poor families hit hardest by British Gas price hikes - 01/08/08
Price hikes from British Gas will impact most heavily on poor families, putting further pressure on debt-hit Britons, a charity has warned
Price hikes from British Gas will impact most heavily on poor families, putting further pressure on debt-hit Britons, a charity has warned
Lenders hike rates on overdraft debt - 30/07/08
Banks are stinging Britons with higher repayment rates on their overdraft debt, it has been revealed
Banks are stinging Britons with higher repayment rates on their overdraft debt, it has been revealed
