Mortgage Arrears Reach Highest Level Since 2014

As a homeowner, there’s nothing more unsettling than falling behind on your mortgage payments. Unfortunately, the latest figures from the Bank of England reveal that the value of outstanding mortgage balances with arrears has reached its highest level since 2014. The total value of outstanding mortgage balances with arrears increased by 4.2% from the previous quarter to £21.3 billion, according to the mortgage lenders and administrators statistics.

Mortgage arrears have reached a six-year high

This alarming trend is a cause for concern, especially for those who are struggling to make ends meet. The proportion of the total loan balances with arrears, relative to all outstanding mortgage balances, has increased to 1.28%, the highest level since the fourth quarter of 2016.

Mortgage rates are currently trading sideways

Simon Gammon, managing partner at Knight Frank Finance, notes that while the proportion of the total loan balances in arrears is still relatively low at 1.28%, Bank of England policymakers will be watching this data closely. He advises that mortgage rates are currently trading sideways and should continue to ease once the timing of the Bank of England’s first cut to the base rate becomes clearer.

Many lenders have signed up to a mortgage charter

For those who are struggling to make their mortgage payments, it’s essential to contact their lender as early as possible. Many lenders have signed up to a mortgage charter, offering a range of options for struggling borrowers, tailored to their needs.

Don’t struggle in silence - seek help if you’re falling behind

As a homeowner, it’s crucial to stay on top of your mortgage payments. If you’re struggling, don’t hesitate to reach out to your lender for assistance. Remember, it’s always better to seek help than to risk falling further behind.