Mortgage arrears 'to hit 500,000'

Published 18th Dec 2008

Mortgage lenders predict the recession will lead to a huge rise in arrears among their borrowers in 2009.

The Council of Mortgage Lenders (CML) said the number of households more than three months behind with their repayments would reach 500,000.

That will be more than double this year's expected figure of 210,000.

The CML said 2009 would be "very tough" because the recession would drive up unemployment and lead to 75,000 repossessions among borrowers.

"The economic recession means unemployment is rising sharply, and this will inevitably impact on the number of households facing mortgage arrears," it said.

Source: ' bbc '

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