Citizens Advice Experiences Increase in Mortgage Arrears Enquiries

By Peter Wakeford
Published on 10 Oct 2008
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More people are making mortgage arrears enquiries, according to the CAB

The number of people needing advice about mortgage arrears is on the increase, new figures have shown.

More and more people are seeking help with mortgage arrears, Citizens Advice has reported.

According to new figures, the Citizens Advice Bureau in England and Wales has experienced a 35 percent rise in enquiries relating to arrears in mortgages and secured loans over the past 12 months.

There have been 77,324 new enquiries since October last year. In addition, the most recent figures for the year's second quarter (July to September), demonstrate a 51 percent increase in queries relating to new mortgages and secured loans.

In slightly more positive news, however, there was a decrease in the number of people seeking help for debts on store, charge and credit cards, as well as unsecured personal loans.

Citizens Advice found that most clients in arrears over mortgages and secured loans were aged 35 to 49, with nearly half (49 per cent) having dependent children.

The advice charity has welcomed the government's mortgage rescue plan, although it warned that lenders need to act with "forbearance" in order for the moves to work.

While praising the government's cuts in waiting times and increased capital limit for Income Support for Mortgage Interest, Citizens Advice urged lenders to help devise affordable repayment schemes for struggling borrowers.

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