Mortgage arrears jump as the cost of living crisis bites

81,900 homeowners were behind with their mortgage repayments in the second quarter of 2023 - a jump of 7% compared with the same time last year - according to UK Finance.

The data also shows that 610 homeowners had their homes repossessed because of their arrears. That’s 19% fewer than in the previous quarter showing that the measures brought in by Jeremy Hunt to help mortgage holders struggling with interest rate rises might be working.

The measures announced in June enabled homeowners to speak to their banks or lenders about their options without it hurting their credit score.

Homeowners were also able to change the length or their repayment terms or move onto interest-only plans for six months without it impacting their credit rating.

And at the same time, mortgage lenders promised to introduce a 12-month waiting limit before they started repossession proceedings.

What should you do if you’re in mortgage arrears?

If you get into debt with your mortgage or can’t afford the repayments, don’t wait for your lender to contact you.

They’ll normally write to you within 15 days of a missed payment, but you should speak to them as soon as possible.

Lenders must treat you fairly and consider any request you make to change the way you pay your mortgage.

They can take you to court to repossess your home if you can’t agree a way forward. But even then, it’s not too late to try to reach an agreement.

We can help

If you’re worried about mortgage arrears or any other type of debt, get in touch. We can help with free and independent debt help to find the best solution for you.