CAB reports sharp rise in mortgage arrears enquiries

Latest figures from the Citizens Advice Bureau (CAB) show a steep rise in the number of enquiries about arrears on mortgages or secured loans, over the past three months.

The number of people falling behind with their homeloans and seeking help from the charity increased by 51% over the three months to the end of September, compared with the same period of 2007.

Over a 12 month period, CAB offices in England and Wales experienced a 35% rise in mortgage and secured loan arrears cases; staff have dealt with 77,324 new enquiries since October of last year.

Job loss or business failure (20%), ill-health (17%) and relationship breakdown (16%) were cited as the most common reasons for people getting into difficulties with their lenders.

The CAB has also recorded a 10% rise in the number of people seeking advice because they are struggling to pay their fuel bills but a 4% annual reduction in repayment enquiries on unsecured debts, which include credit and store cards.

Of those contacting the CAB for help with debt who had dependent children, 18% were single parents; 10% had a long-term health problem and 13% were disabled.

According to the charity’s records, homeowners were an average of four months in arrears when their lenders started repossession proceedings.

CAB chief executive, David Harker, says it is now vital that mortgage lenders help people in arrears to come to a workable solution over repayment arrangements.

Discuss this in the Finance Markets forums

Story link: CAB reports sharp rise in mortgage arrears enquiries