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MAKING STRONG PROGRESS THREE YEARS ON.
UKAR’s CEO Richard Banks reflects on the third anniversary of UKAR.
UKAR ARena, published in Summer 2012, I reported key
“ Working in close
partnership with the
debt advice industry,
has helped us reduce
the number of
accounts in arrears.”
Richard Banks, UKAR.
“The New Year is always a time to reflect on past successes
and consider future plans, and here at UKAR we have plenty
of reason to do both. In October 2013 we celebrated the third
anniversary of bringing our heritage businesses together
under UKAR.
statistics relating to the number of mortgage holders on
UKAR’s books and the extent of their collective borrowing
and arrears. Now, as we enter 2014, those figures have
changed significantly as we help customers manage their
finances, whilst we continue to deliver value for the taxpayer.
At our formation in October 2010 we had 850,000 mortgage
holders, with £86 billion of loans. Now we have just 491,000
with £64 billion of loans.
Working in close partnership with the debt advice industry,
has helped us reduce the number of accounts in arrears
of over three months too – falling from 39,532 in October
2010 to 18,993 at end of September 2013. We will not be
publishing our accounts until after March 2014, but at the
end of December the numbers in arrears had continued
Since our formation in October 2010 we have been working
to fall. More customers are clearing their arrears in full and
hard, serving the needs of taxpayers and mortgage customers
thankfully there are fewer repossessions.
and forging closer relationships with the debt advice industry.
Research from YouGov and the Money Advice Service shows that
We inherited the mortgage books of Bradford & Bingley,
individuals who seek advice are twice as likely to make debts
Mortgage Express and Northern Rock supported by
manageable within 12 months compared to those who do not.
government loans totalling £48.7 billion.
With that in mind, we have adopted a proactive approach
We expect to repay the majority of these loans within the
to debt management; engaging customers who may be
next ten years and we have already repaid more than
in financial difficulty, or those showing signs that they are
£9 billion, a real achievement for us all.
struggling to balance budgets.
Helping borrowers in financial difficulty access the best debt
We can then signpost them to independent and impartial
advice has been a vital part of our strategy – and an
debt advice providers to get the support they need to
approach which is paying dividends. In the first issue of
ensure that they can continue as homeowners. The number
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UKAR ARENA WINTER 2013