The UK’s major lenders have recently rejected claims that the country is facing an arrears crisis. This comes after a report by the Financial Conduct Authority (FCA) revealed that the number of people falling behind on their mortgage payments had increased by 10% in the last year.
The FCA report showed that the number of people in arrears had risen from 1.6 million to 1.8 million in the past 12 months. This has led to concerns that the UK could be facing an arrears crisis, with many people struggling to keep up with their mortgage payments.
However, the UK’s major lenders have dismissed these claims. They argue that the increase in arrears is not a sign of a crisis, but instead is a result of the economic uncertainty caused by Brexit. They point out that the UK economy has been relatively stable since the Brexit vote and that this has enabled people to keep up with their mortgage payments.
The lenders also point to other factors which have contributed to the rise in arrears, such as rising living costs and stagnant wages. They argue that these factors have put pressure on people’s finances and made it harder for them to keep up with their mortgage payments.
The lenders have also highlighted the fact that they are taking steps to help those in arrears. They have introduced measures such as payment holidays and debt restructuring plans which are designed to help people get back on track with their mortgage payments.
Overall, it appears that the UK’s major lenders are not convinced that the country is facing an arrears crisis. They argue that the rise in arrears is largely due to economic uncertainty caused by Brexit, as well as other factors such as rising living costs and stagnant wages. They also point out that they are taking steps to help those in arrears, such as introducing payment holidays and debt restructuring plans.