Mortgage Arrears Fall in 2009
Mortgage arrears dip in 2009 as base rate is at record low
There has been a fall in the number of homeowners falling into arrears. The number of borrowers falling behind with their minimum repayments has dropped by 4% to 378,000 in the last quarter of 2009. The statistics from the Financial Services Authority (FSA) also shows the number of new cases in the same quarter fell by 9% to 41,000.
Repossessions are also down with new repossession cases at 11,800 which are down 15% the last quarter of 2009. Experts had predicted at the end of 2008 that there would be 75,000 repossessions and 500,000 mortgage accounts falling into arrears. The actual number of repossessions in 2009 according the FSA was 54,000. Undoubtedly, the record low Bank of England interest rate at 0.5% for the past year has helped the predicted borrowers, along with government initiatives to help homeowners stay in their homes.
The government has ploughed a further £2.5m into promoting its mortgage help website and National Debtline to encourage those in financial trouble or impending financial trouble to seek professional help.
The housing minister, John Healey, said: “We’ve pulled out all the stops with government support to help people avoid losing their home. More than 330,000 families have had help and advice with their mortgages over the past year, which is one reason why repossessions are running at half the rate of the last recession.
“I would urge anyone facing money worries not to bury their head in the sand, but to go to our repossessions help website or call the National Debtline to get help in keeping their home.”
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