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Increasing number of mortgage payers behind on payments

08/08/2008

According to City Watchdog, there are more than 300,000 mortgage borrowers who are behind on their payments in the first quarter of the year.

The FSA (Financial Services Authority) published figures that showed that 54,000 mortgage borrowers in the first quarter fell behind on their mortgage payments. This brings the total number of mortgages in arrears to 302,000. There has also been a significant increase in the number of repossessions in the first quarter of this year and the last quarter of last year. This has brought the figure to 9,152 new cases in the first quarter of 2008 and is a rise of 40% year on year.

The rise in the cost of living has been a major contribution for these difficult times homeowners are experiencing. Northern Rock said earlier in the week that the number of mortgage payers who had fallen into arrears, was up significantly compared to the same time last year, by 0.38%.

Lesley Titcomb the FSA Director who is responsible for the mortgage sector said, "As our data shows, in these current market conditions more people are struggling to meet their mortgage payments and it is vital that firms treat them fairly."

"This means paying attention to their individual circumstances and not repossessing their homes when there may be an alternative solution. Repossession has to be the last resort."


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