- Wednesday, 5 August 2009Despite recent good news, a significant proportion of UK homeowners are still struggling to meet their mortgage commitments, often falling into arrears and being forced to seek out debt advice or
IVA solutions as a result.
That is the picture that has been painted by the latest figures to be published by the government-owned lender Northern Rock.
According to the statistics, some 3.92 per cent of its mortgages are now in arrears, compared to 3.67 per cent just three months ago.
This growing inability of borrowers to meet their mortgage commitments has been cited as one of the factors behind the loss of £724.2 million, which Northern Rock posted for the first half of 2009.
In particular, Gary Hoffman, chief executive at the lender, placed the blame largely on its Together mortgages, which once allowed customers to borrow 125 per cent of a property's value but which have now saddled many with high levels of debt.
"Together mortgages are a third of the book, half of the arrears and two thirds to the repossessions," he said.
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