Sharp rise in mortgage arrears should “ring alarm bells in Downing Street”

There has been an 18% rise in homeowners in mortgage arrears over the past year, the latest UK Finance figures have revealed.

The data shows there were 87,930 homeowners in mortgage arrears worth at least 2.5% of their outstanding loan in the third quarter of 2023, up from 74,420 in the same period last year.

The Liberal Democrats said the figures show families are facing “mortgage misery” and reiterated their calls for a Mortgage Protection Fund, with targeted support to prevent people losing their home, funded through scrapping tax cuts for the banks.

Liberal Democrat Treasury Spokesperson Sarah Olney MP said:

"This sharp rise in mortgage arrears should be ringing alarm bells in Downing Street.

"The Conservative Party crashed the economy and is now forcing ordinary families to pick up the tab.

"Homeowners facing mortgage misery should be offered a rescue scheme, with targeted support to protect those most at risk of losing their home. It is the least this government could do after the economic damage they have caused."

ENDS

Notes to Editor:

Figures from UK Finance are available here

Mortgage Protection Fund 

The Liberal Democrats are calling for an emergency ‘Mortgage Protection Fund’, paid for by reversing Conservative tax cuts for banks, to protect families falling into arrears or facing repossession as a result of soaring interest rates.

The fund would be targeted towards homeowners on the lowest incomes and those seeing the sharpest rises in mortgage rates. Those whose mortgage payments rise by more than 10% of their household income would be eligible for grants to help cover the cost of that rise, paid monthly. These payments would be capped at £300 a month.