Bloomberg News

Fewer U.K. Mortgage Holders Fell Into Arrears in Second Quarter

September 14, 2010

Fewer U.K. mortgage holders failed to make repayments on their home loans in the second quarter as low interest rates and the economic recovery improved Britons’ financial positions, the Financial Services Authority said.

The number of mortgage holders falling into arrears in the three months through June declined 27 percent compared with the same period in 2009, with the number of new cases declining to 37,200, the U.K.’s London-based financial watchdog said in an e- mailed report today. Total loans in arrears dropped for a fourth quarter, falling 13 percent from a year earlier to 351,100.

The Bank of England maintained its emergency bond-purchase plan this month and left its benchmark interest rate at a record low to support the economic recovery. Policy makers have said growth may lose steam and consumer confidence might be weakened as the government implements the biggest public spending cuts since World War II and the global economy cools.

From the first quarter, total loans in arrears fell 3 percent in the three months through June, while the number of new arrears slipped 8 percent.

To contact the reporter on this story: Scott Hamilton in London at shamilton8@bloomberg.net

To contact the editor responsible for this story: John Fraher at jfraher@bloomberg.net


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