UK's mortgage arrears problem 'not resolved'

By Jonathan Dawes, Wed 18 Aug 2010 - Published in Mortgages

The UK has a number of mortgage holders who are in arrears with little hope of improvement in the short term, it has been claimed.

Recent figures published by the Council of Mortgage Lenders revealed that there were 9,400 repossessions in the second quarter of 2010, falling from 9,800 in the previous three-month period.

In addition, the report showed that the number of people behind with their mortgage payments has continued to fall.

Commenting on the findings, LandlordZONE.co.uk director Tom Entwistle said that government schemes to extend forbearance for borrowers have improved the arrears situation for some, but pointed out conditions remain harsh for others.

"The fact is that … there's a hardcore of borrowers in arrears with little immediate prospect of improvement," he explained.

Mr Entwistle added mortgage arrears could remain at their current levels for some time to come, but noted that it remains possible they could worsen again with very little notice.

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