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<p>Mortgage arrears levels remain at historically low levels. According to the latest
UK Finance data, there were 74,560 homeowner mortgages in arrears at the end of June,
10% fewer than in the same period in the previous year.</p><p> </p><p>Around 75% of
residential mortgage borrowers are on fixed-rate deals and are therefore shielded
from interest rate rises in the short term.</p><p> </p><p>However, the Government
has already taken immediate action to help households, including those in the Liverpool
Wavertree constituency and the North West of England, through the Energy Price Guarantee.
This is in addition to the £37 billion of targeted support for the cost of living
this financial year.</p><p> </p><p>For mortgage borrowers that do enter financial
difficulty and struggle to keep up with payments, Financial Conduct Authority guidance
requires firms to provide support through tailored forbearance options. This could
include a range of measures depending on individual circumstances.</p><p><em> </em></p><p>The
Government has also taken a number of measures aimed at helping people to avoid repossession,
including Support for Mortgage Interest loans for those in receipt of an income-related
benefit, and protection in the courts through the Pre-Action Protocol, which makes
it clear that repossession must always be the last resort for lenders.</p>
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