Home owners in the UK who find themselves in arrears should contact their lender sooner rather than later but those providing mortgages could manage some situations better, according to the financial watchdog.
Mortgage lenders are failing to support some vulnerable people who have fallen behind on their repayments, the financial watchdog has said.
A five-week wait for Universal Credit has been a major factor in pushing some claimants into rent arrears, the government's own research has found.
Universal Credit merges six existing benefits into one and is being introduced gradually across the UK.
ccording to the latest data from the Tenant Deposit Scheme, cleaning continues to take the lion’s share of deposit disputes, while disputes over rent arrears soar by 90%.
Cleaning has been the most common dispute in cases brought to the TDS and in 2015-2016 it accounted for 57% of cases, down just 1% year-on-year. Rent arrear disputes showed a significant increase, soaring from 10% to 19% year-on-year.
FCA review finds lenders mistakenly collected arrears payments twice from 750,000 customers
Buy to let mortgage arrears in the UK are set to fall below 7,000 by the end of the year as landlords are confident and lenders have no reason to feel differently due to Brexit.
The forecast from complex buy to let, commercial mortgage and short term finance lender Keystone, based on official data from the Council of Mortgage Lenders (CML), points out there has been no let-up in demand.
Latest official estimates show 9,300 cases of buy to let mortgage arrears as of the first quarter of 2016, down from 10,300 the previous quarter and 11,300 in the first quarter of 2015.
Tenants in the UK private rented sector are now less likely to suffer from a serious build-up of arrears with just 1.6% of tenancies in this position, the latest research shows.
The number who had moved out of series rent arrears improved by 1.5% in the final quarter of 2015 compared to the previous quarter, according to the latest Tenant Arrears Tracker by estate agency chains Your Move and Reeds Rains.
This reverses some of a deteriorating trend throughout the earlier parts of 2015. There were 82,900 households behind on more than two months’ rent, down from 84,200 in the third quarter of 2015.
Mortgage arrears in the UK are at their lowest for more than a decade with fewer than one in 1,000 ended in repossession in 2015, according to the latest data from the Council of Mortgage Lenders.
Beneath the headline figures, the CML quarterly data shows home owner mortgage arrears running at 1.03% of all loans at the end of 2015, with buy to let at a lower rate of 0.31%, continuing the recent trend of a lower prevalence of arrears in the buy to let market.
However, the picture is reversed on repossessions, with around one repossession per 2,500 mortgages in the buy to let market in the fourth quarter of the year, compared with one in 5,000 in the homeowner market.
Last September 84,200 UK tenants owed more than two months’ rent, up from 74,000 in June, say Your Move and Reeds Rains estate agents
The number of tenants seriously behind on rent has risen by 13.8% on a quarterly basis, according to the latest Tenant Arrears Tracker by estate agency chains Your Move and Reeds Rains.
There are now 84,200 tenants more than two months behind with paying their rent, as of Q3 2015, compared to 74,000 in the second quarter. In absolute terms this represents a quarterly increase of 10,200 additional households in potentially serious financial difficulties. On an annual basis, this means 13,200 more households are in significant arrears than a year ago, or an annual increase of 18.6% since Q3 2014, when this figure previously stood at 71,000 across the UK.
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