The research, carried out on 451 borrowers who had missed two or more consecutive payments on their mortgage over the last two years, found the majority of borrowers that fell into arrears either have repaid or are currently repaying their arrears.
While 43% of those that had fully repaid their arrears had sought advice, 54% that were currently repaying their arrears had received advice.
The BSA also found that 46% of borrowers that spoke to their lender before they got into difficulty had repaid their arrears. Most borrowers believe their lender was helpful through the arrears process. 59% of borrowers in arrears agreed their lender treated them fairly, with 17% disagreeing. 58% thought that their lender was very or quite helpful, but 18% thought their lender was very or quite unhelpful.
The most common cause of arrears was the loss of a job or income, which was chosen by 43%. Working extra hours was cited as the main common cause of reapying funds.
Paul Broadhead, head of mortgage policy at the BSA, said the results highlighted the importance of borrowers contacting their lender and seeking advice as soon as they face potential payment difficulties.
He added: “Doing so enables the lender to consider all reasonable options to assist the borrower. Those that face payment problems should therefore not be daunted by their arrears, but should take control of the situation by seeking help as soon as they can.”
