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Number of youngsters in arrears almost halves

The number of homeowners in mortgage arrears in their twenties has also almost halved over the past two years, according to new figures from debt charity Consumer Credit Counselling Service

Fewer homeowners in their twenties are seeking the charity’s help, down from 4,489 in 2009 to 3,008 in 2011.

While only 816 clients in their twenties had mortgage arrears in 2011 compared with 1,344 in 2009.

There has also been a dramatic improvement in the household budgets of CCCS’s homeowning clients in their twenties. They have gone from having a budget deficit of £15.02 in 2009 to having a budget surplus of £63.42 in 2011.

The budget situation of CCCS homeowning clients in their twenties with arrears has even improved too, rising from a budget deficit of £239.40 in 2009 to having a budget deficit of £113.78 in 2011.

The charity attributes this improving situation to low interest rates which have seen average monthly mortgage payments for its homeowning clients in their twenties going down 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 ofrising interest rates.”

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