Mortgage Holders Beware: The Alarming Rise of Arrears

As the Bank of England sounds the alarm, mortgage holders across the UK are facing a daunting reality. The latest figures reveal a staggering 44.5% increase in mortgage arrears, with over half a million households struggling to keep up with their payments. This marks the highest level since the final quarter of 2016.

Mortgage holders are facing uncertain times

The root of the problem lies in the significant hike in mortgage rates. Although rates have fallen since peaking last year, they remain much higher than they’ve been over the past 14 years. This means that those coming to the end of a five-year fix can expect to see their interest payments almost double. The average two-year fix rate is currently close to six per cent, making it a daunting prospect for many homeowners.

Mortgage rates are still much higher than they’ve been in recent years

The consequences of missing a mortgage repayment without notifying your lender can be severe. It can trigger the ‘arrears’ issue, starting the clock towards repossession. This is a dire warning to those who have missed one or more repayments and haven’t yet contacted their lender. Reaching out to your lender is an urgent priority.

Don’t ignore the warning signs - contact your lender today

The situation is dire, and it’s essential for mortgage holders to take proactive steps to avoid falling into arrears. With the Bank of England warning households up and down the country, it’s crucial to stay informed and take control of your mortgage payments.

Stay informed and take control of your mortgage payments

In these uncertain times, it’s more important than ever to stay vigilant and take action to avoid falling into arrears. Don’t wait until it’s too late - contact your lender today and take the first step towards securing your financial future.

Take control of your financial future