Worried about mortgage arrears? This is what you need to do

Michelle McGagh
AY7AXR man holds head in hands, credit cards bills money for debt money; dept; credit; crunch; calculator; bills; payments; phon
AY7AXR man holds head in hands, credit cards bills money for debt money; dept; credit; crunch; calculator; bills; payments; phon

Fearful of interest rate rises, the City watchdog has demanded mortgage lenders be more proactive in identifying borrowers who may fall into arrears but there are steps you can take to manage a rise in payments.

In a review into how lenders deal with those in arrears, the Financial Conduct Authority (FCA) has warned that households may not be able to cope with increased mortgage payments when interest rates begin to rise from their historic low of 0.5%. The Bank of England has indicated that rates will begin to rise next year, although the pace of increases will be slow.