Credit, Collections & Insolvency News
New data from StepChange Scotland has revealed that around one in five (19%) mortgaged clients were in mortgage arrears in the second quarter of this year, up from almost one in seven (15%) in the second quarter of 2022. This is alongside a year-on-year rise in the proportion of mortgaged clients, which is up from…
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Rising interest rates have caused household wealth across Britain to fall by £2.1 trillion over the past year, but there are winners – concentrated among younger generations – as well as losers if higher rates are sustained, according to major new analysis by the Resolution Foundation and abrdn Financial Fairness Trust. The report notes that…
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Almost a third of people are struggling to afford their mortgage repayments, new research from the Office of National Statistics (ONS) statistics have shown. The survey showed that 43% of renters and 28% of mortgage holders say they are struggling to keep up. The difference between renters’ and mortgage holders’ likelihood of experiencing some form…
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Which?’s June consumer insight tracker found that 1.3 million households missed or defaulted on a household bill payment – such as an energy, water or council tax bill – in the month to June. Missed bill payments have been consistently high since January 2022, showing just how many are struggling to make ends meet every…
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A third (32%) of lenders have seen an increase in borrower defaults over the last 12 months, according to new research from AI powered transaction analytics firm, Fuse. The report found that consumers are increasingly reliant on credit amidst rising living costs – with young people struggling the most. Over four in ten (43%) of 18-34…
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Latest research by Octane Capital, has shown that cases of arrears in the buy-to-let sector are worsening at a faster rate than for homeowners. The figures show that the number of mortgages that have fallen into arrears by 2.5% or more of the mortgage balance, comparing the split between the buy-to-let and residential sectors and…
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A new poll from Savanta, commissioned by the Liberal Democrats, has found that one in two mortgage borrowers fear losing their homes as a result of interest rates growth. The poll found that 46% of mortgage borrowers worried about losing their home with six in ten mortgage borrowers worried about cutting down on food bills…
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Between January 2020 and March 2023, the proportion of clients accessing debt advice who have a car finance debt has risen by 14.8%. In the same period, the average balance of a client’s car finance debt has increased by more than 20%, from £8,077 to £9,705. The charity’s research also found that clients with car finance debt tend to…
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A significant portion of the UK population remains financially stable despite rising interest rates and persistent inflation according to new research by TransUnion. The figures illustrate a contradictory picture of the financial landscape among consumers. On one hand, almost six in 10 (58%) have proactively taken steps to reduce their discretionary expenditures such as dining out,…
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One in five (3.4 million) people aged 50-69 and one in twelve of over 70s (670,000) in the UK have had to borrow more money or use more credit than usual in the last month compared to a year ago, new research by Age UK has found. The analysis showed that 1.3 million over 50s have a…
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The number of households struggling with heavy debt has increased by two thirds since 2017, according to charity Debt Justice. The report shows that around 12.8 million adults in the UK are falling behind on bills or finding repayments a struggle. The Financial Conduct Authority’s Financial Lives survey found that 7.7 million adults in the…
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According to research from the National Institute of Economic and Social Research (NIESR), by the end of the year 1.2 million households or 4% of all UK households, will run out of savings as a result of higher UK interest rates. NIESR says households will run out of savings because of higher mortgage repayments, taking…
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UK banks have agreed to give mortgage holders a 12-month grace period before their homes are repossessed should they fall behind with their repayments. Homeowners will also be able to switch to interest-only for six months or temporarily lengthen mortgage terms for the same period without affecting credit ratings in new measures announced by Jeremy…
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