In its half year interim results, UKAR revealed it has around 655,000 customers, of which 612,000 hold mortgage accounts.
It said that uncertainty over the economy, the rising cost of living and house price deflation is placing pressure on household finances.
“The majority, 90%, of these mortgage loans continue to perform well but we do have a significant number of customers who are finding it difficult to meet their repayments.
“During the first half of 2012 we made 34,000 mortgage arrangements and account modifications to assist customers with their repayments.”
The total number of mortgage cases three or more months in arrears, including those in possession, reduced by 9% since the end of 2011 to 30,222 cases as of 30 June 2012.
The total amount of arrears owed by residential customers fell by £18.8m to £215.1m during the six months to 30 June 2012, a reduction of 8%.
The number of properties taken into possession by UKAR fell by 15% to 3,871 in H1 2012. UKAR said it has increased its overall provision for PPI within NRAM by £65m.
It also revealed that is has repaid a further £788m in government loans, reducing the amount owed to the government down to £45.8bn.
Underlying profit before tax for the first half of 2012 was £481.4m, down from a £591.8m profit in H1 2011.
Richard Banks, UKAR chief executive said: “We have made strong progress in the first half with further repayments to the government. Much of our focus is on helping those of our customers who are in financial difficulty and it is pleasing to see a further significant reduction in arrears levels despite the continued economic uncertainty and pressure on consumers’ finances.”