CCR Magazine

FICO webinar
You are here  :Home arrow News arrow THE MONEY STATS - Mortgage arrears on the rise again
Contact Us Newsletter Signup RSS Feeds

Latest News Headlines

Headlines

 
Commercial Credit News

Headlines

 
THE MONEY STATS - Mortgage arrears on the rise again PDF Print E-mail
Wednesday, 12 October 2016
The Money Stats are out today and figures show that after years of steady falls, cases of mortgage arrears have risen for the second quarter in a row. 

According to the Financial Conduct Authority, at the end of Q2 2016 there were 218,279 mortgage loan accounts with arrears of more than 1.5% of the current loan balance. This is 5% up on the previous quarter and 14% up on the low at the end of 2015.

From a high of nearly 400,000 residential loans to individuals having arrears greater than 1.5% of the total amount owed in early 2009, this number had more than halved, falling in almost every quarter through to the end of last year.

The average mortgage interest rate was just 2.84% in August. This low rate, together with a recovering economy has helped bring about the fall, but this year seems to no longer be having the same effect.

Fortunately, this has not yet fed through to an increase in mortgage possession claims. These are 9% down on a year ago and have fallen from a high of more than 20,000 per quarter in 2009 to fewer than 5,000 in spring 2016.

Michelle Highman, Chief Executive of The Money Charity says: “Mortgage interest rates have been extremely low in the last few years, and have been part of what has allowed more people to pay off and avoid arrears.

People’s houses are in most cases by far the largest assets they have. We at The Money Charity are glad that these growing arrears have not yet resulted in more people leaving their homes. But with the government recently signalling that rates will have to rise, households with tracker mortgages in particular may have to budget for much larger repayments.

Both individuals and the government should be prepared for more mortgage arrears and difficult times ahead.”

Other key points from August’s Money Statistics include:
The population of the UK grew by an estimated 1,286 people a day between 2014 and 2015.
The Bank of England Base Rate is currently set at 0.25% (since being established in 1694, the Rate has never been lower).
People in the UK owed £1.499 trillion at the end of August 2016. This is up from £1.445 trillion at the end of August 2015 – an extra £995.43 per UK adult.
 

 Forums International Ltd

Forums International Ltd

 Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.

Find out more here.

latest issue

CCR Cover

The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.

Read the latest issue online

CSA

subscriptions

CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.

As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.

Subscribe to CCR Magazine

CCR World Magazine


 

Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.

Find out more

GTS Media Ltd
81 Cambridge Road
Southend-on-Sea
Essex
SS1 1EP

Registered in England No: 05483197