UK ‘mortgage meltdown’ looms amid ‘terrifying’ growth in arrears

Housing in Ecclesall, Sheffield, which mainly caters for students. Landlords face a ‘unique set of challenges to avoid going into arrears’. Photograph: Gary Calton/The Observer

Mortgage balances with arrears jumped by 13% in the second quarter of the year to the highest level since 2016, according to Bank of England figures that underscore the stress in the UK mortgage market.

Rising interest rates and unemployment over recent months have put pressure on household disposable incomes, forcing some families to cut or suspend their monthly mortgage payments.