According to research by the Council of Mortgage Lenders, short-term mortgage arrears have shown their first significant increase since 1998. The report has shown that that short-term arrears of three to six months rose by 9.5% to 53,960 in the second half of 2004, from 49,270 in the first half.
Even though the figures have risen lately, this is the third lowest on record. When the CML first started to collect data in 1994, there were nearly 190,000 in the first half of that year. The number of repossessions has remained low, with 3,070 homes being repossessed, compared to 3,160 in the first half of 2004.
The number of long-term arrears also remains low, 38,130 cases in the last half of the year, compared to 38,640 in the first half, but many of the short term debts will filter through and become long term, increasing this figure.
Our view
We have been warning of this for some time. If you do get into difficulty talk to your lender first - do not 'bury your head in the sand'.