MORE home-owners are expected to fall into mortgage arrears this year as the economic repercussions of the coronavirus pandemic continue to be felt, according to UK Finance.
The trade association, which represents the banking and finance industry, said mortgage arrears remained close to historically low levels in the first three months of 2021.
From March 2020 to the end of March this year, lenders were offering payment holidays of up to six months to borrowers whose finances had been affected by the coronavirus pandemic.
Nearly 2.9 million mortgage payment deferrals were granted while the scheme was active.
For borrowers who need additional support beyond the six-month payment holidays, lenders are continuing to offer tailored support.
UK Finance’s latest figures show a small increase of 230 mortgages in arrears compared with the previous quarter, with a total of 77,640 home owner mortgages in arrears of 2.5% or more of the outstanding balance.
Within the total, there were 27,280 mortgages with significant arrears representing 10% or more of the outstanding balance….
