Homeowners in the North more than twice as likely to be in mortgage arrears

Homeowners in parts of northern England are more than twice as likely to be in mortgage arrears than those in the South, according to analysis of FCA data by 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%, equivalent to more than 115,000 people.

Rachel Hunnisett, director of mortgage distribution at April Mortgages, commented: “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.

"Locking in a fixed rate for 5, 10, or even 15 years means your monthly payments will remain predictable, regardless of how the market fluctuates. This can be especially valuable in a volatile economic climate and help to ensure that borrowers are not only able to afford their home but keep it too."