Tuesday, December 3, 2024
HomeMortgageNorthern regions see higher levels of mortgage arrears than South

Northern regions see higher levels of mortgage arrears than South



Homeowners in parts of northern England are more than twice as likely to be in mortgage arrears than those in the south, according to analysis.

The North East was found to have the highest share of homeowners in mortgage arrears at 1.76% followed by the North West, 1.6%, and Wales, 1.53%, according to April Mortgage’s analysis of the Financial Conduct Authority‘s data.

The lowest percentage of homeowners in mortgage arrears were found to be in the South West at a rate of 0.86%, with the South East and East England closely behind where 0.99% and 0.98% of homeowners are in debt, respectively.

 

Northern regions worst hit

April’s director of mortgage distribution Rachel Hunnisett said the figures showed clear evidence of a north and south divide.

“Homeowners in parts of northern England and Wales seem to have been disproportionately affected by the combination of rising living costs and higher mortgage rates,” she said.

Zephyr Homeloans to greenlight £5m+ cases in ‘white glove’ service


Sponsored

Building a better PRS for all

With already complex regulation on landlords today and more changes on the horizon, Heather Cara,

Sponsored by BM Solutions


“Although inflation has fallen this year, the cost of living is still increasing and households without spare disposable income or significant savings to fall back on are finding it harder to maintain their mortgage repayments.

“Interest rates may have passed their peak, but many homeowners are paying more for their mortgage than they were in recent years and this is causing borrowers greater stress.”

On average, the total number of UK mortgage borrowers behind on their repayments by two months or more is 1.29%, equal to the share in London.

There are more than 115,000 UK borrowers who are at least two months behind with their monthly payments.

Hunnisett added: “If you’re concerned about rising interest rates, opting for a longer-term fixed-rate mortgage can offer peace of mind and financial stability.

“Locking in a fixed rate for five, 10, or even 15 years means your monthly payments will remain predictable, regardless of how the market fluctuates. This can be especially valuable in a volatile economic climate and help to ensure that borrowers are not only able to afford their home but keep it too.”





Source link

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments