Homeowners in parts of northern England are more than twice as likely to be in mortgage arrears than those in the south, according to new analysis of Financial Conduct Authority (FCA) data by longer-term lender April Mortgages.
The latest mortgage arrears data provided by the FCA shows that the North East (1.76%) has the highest share of borrowers who have missed at least their last two mortgage repayments, followed by the North West (1.60%), Wales (1.53%) and Yorkshire & Humber (1.50%).
In contrast, just 0.86% of South West’ homeowners are behind on their repayments by two months or more.
Arrears in the South East (0.99%) and the East of England (0.98%) are also less than 1%, which highlights a clear north-south divide across the UK.
On average, the total number of UK mortgage borrowers behind on their repayments by two months or more is 1.29%, equal to the share in London. There are more than 115,000 UK borrowers who are at least two months behind with their monthly payments. With interest rates rising sharply from record lows in recent years, mortgage arrears have been steadily climbing.
Rachel Hunnisett, Director of Mortgage Distribution at April Mortgages, said “The number of UK homeowners falling into arrears is on the rise and these latest figures show clear evidence of a north-south divide.
“Homeowners in parts of northern England and Wales seem to have been disproportionately affected by the combination of rising living costs and higher mortgage rates.
“Although inflation has fallen this year, the cost of living is still increasing and households without spare disposable income or significant savings to fall back on are finding it harder to maintain their mortgage repayments.
“Interest rates may have passed their peak, but many homeowners are paying more for their mortgage than they were in recent years and this is causing borrowers greater stress.”
Share of UK homeowners in mortgage arrears by at least two months
| Region |
Number of mortgages (at least two months in arrears) |
Share |
Current payment shortfall (£) |
| North East |
6,393 |
1.76% |
47,706, 455 |
| North West |
16,531 |
1.60% |
155,711,451 |
| Wales |
5,768 |
1.53% |
48,212,952 |
| Yorkshire & Humber |
11,593 |
1.50% |
89,067,309 |
| West Midlands |
10,777 |
1.43% |
96,763,768 |
| Greater London |
13,794 |
1.29% |
1,167,719,162 |
| Scotland |
9,895 |
1.28% |
102,804,788 |
| East Midlands |
8,339 |
1.18% |
74,646,256 |
| South East |
8,884 |
0.99% |
206,730,720 |
| East of England |
8,571 |
0.98% |
124,987,723 |
| South West |
9,403 |
0.86% |
151,235,386 |
The post North of England hardest hit by rising mortgage costs appeared first on Credit Connect.