Defaults on mortgages in the UK are still relatively low. The number of mortgages in arrears by more than 3 months is 1.1%  or 129,000 out of 11,000,000 mortgages. In 1995 (when statistics started), the % with arrears was 3.82%. This was due to the   higher interest rates in the early 1990s

However, the number defaulting is expected to rise this year. Rising living costs such as food and energy prices are squeesing disposable income at a time of wage restraint. Unemployment is also rising at the fastest rate since 1992, the number on claimant count benefits has increased to over 1 million.

With the prospect of recession, the bank of England is reluctant to increase interest rates. However, with inflation forecast to rise to 5% there is also no room for cutting interest rates.

Council of Mortgage Lenders statistics

Bad news for homeowners continues