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Low rates prompt drop in arrears for young owners

The number of home owners in their 20s in mortgage arrears contacting debt charity Consumer Credit Counselling Service has almost halved over the past two years.

CCCS saw only 816 such clients with arrears in 2011 compared with 1,344 in 2009. The charity attributes the improvement to low interest rates which have reduced monthly mortgage payments for its home-owning clients in their 20s from £543.92 in 2009 to £471.61 in 2011.

Delroy Corinaldi, director of external affairs at the CCCS, says: “While many young adults are struggling to get on the property ladder, the outlook is more positive for those that are already on it.

“Nevertheless, this is not a time for complacency as there are multiple pressures attacking their ability to pay their mortgage and many will buckle under the pressure of rising interest rates.”

The household budget of CCCS’ home-owning clients in their 20s improved from a deficit of £15.02 per month in 2009 to a surplus of £63.42 in 2011.

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