It is a well known fact that personal finances are beginning to get tough for a large number of individuals with homeowner loans and secured loans on their properties, but it would appear that the situation is actually getting worse according to a recent survey.

The research company Standard and Poor’s has been monitoring the level of arrears on homeowner loans and mortgages since 2000 and has revealed that there has been a 50 per cent increase in the number of borrowers who are in at least one months arrears with their loan, over the course of the last twelve months.

The figures, which are taken up to the end of September this year, have shown that 3.24 per cent of all those loans in arrears are made up of prime loans, where borrowers have previously had an excellent credit rating and no arrears on any previous loans or mortgages, this is double the figure for the same period last year and the highest level since the survey began.

The number of cases which are now in arrears of three months or more has also increased to 1.16 per cent of all homeowner loans, but if bad credit loans are included, this figure rises to 1.44 per cent.

The recent reduction in interest rates may be of some comfort to borrowers who are struggling to keep up to date with their loan repayments, provided that their lender has passed on the full saving to them, but despite this, the level of homeowner loan arrears is continuing to increase at an alarming rate and many experts predict that we are likely to see a large increase in the number of properties being repossessed as we go through 2009.