Mortgage arrears increase
The Financial Services Authority (FSA) has released recent figures which show the mortgage arrears have increased by 31%.
In December 2008 there was over 370,000 mortgage accounts that were in arrears by more than 1.5% of their balance. This indicates that borrowers that are in arrears hold 3.4% of all mortgage loans and the loans total to over £40bn.
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.”
This demonstrates that recession, decrease in incomes and unemployment has made it hard for some people to pay back their mortgage which they took out before the house price boom a few years ago.
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