A growing band of homeowners is struggling to keep up mortgage payments, with the number of loan accounts in serious arrears in the third quarter of last year rising by nearly a quarter over the same period the previous year, according to data from the Financial Services Authority.

The FSA, which oversees mortgage lenders, reported that 340,000 arrears cases had arisen by the end of the period – equal to 2.92% of the nation’s mortgage loan book. That is 24% higher than arrears a year earlier.

The number of homes repossessed for non-payment has also grown significantly, rising 92% to 13,161 in the third quarter from fewer than 7,000 the year before.

Financial Times